The Swami Market Mode indicator shows you whether a security is in trend mode or swing mode. Green indicates
an uptrend and red indicates a downtrend while yellow indicates trading within a range (i.e., support-resistance channel or swing mode).
Swami Market Mode operates by measuring the direction and slope of then trend across a cycle period and comparing
this slope to the peak-to-peak amplitude swing of the cycle across the same period. The cycle period ranges from
12 to 48 bars, and is scaled on the vertical axis. If the ratio is greater than one (green), an uptrend is indicated.
If the ratio is less than minus one (red), a downtrend is in effect. If the cycle amplitude is greater than the
absolute value of the trend, the cycle mode is indicated. The swing mode has the most effectiveness for swing trading.
An uptrend is indicated by green, a downtrend is indicated by red, and the swing mode is indicated by yellow.
In the example chart for BAC above, the beginning of an uptrend (green) is detected in the middle of December. By the first of February
the swing mode (yellow) has started to replace the uptrend, although the uptrend remains in effect through mid-February
for the longer lookback periods. The swing mode however turns decidedly into a downtrend (red) beginning around the third
week of March.