The Absolute Strength indicator indicates the current market “strength” in two different ways possible:

1. RSI Method
2. Stochastic Method

and by separating the bulls and bears into 2 curves.

The results are then averaged with the same “length” as the one used for these 2 above methods and smoothed a second time using the “Smooth” variable. The moving average mode used is by default the Weighted one.

//PRC_Absolute Strength | indicator
//16.01.2019
//Nicolas @ www.prorealcode.com
//Sharing ProRealTime knowledge

// --- settings 
Mode =0   // 0-RSI method 1-Stoch method
Length = 9 // Period
Smooth = 1 // Period of smoothing
ModeMA = 2 // Mode of Moving Average
// --- end of settings 

if barindex>max(Length,Smooth) then 
 Price1=customclose
 Price2=customclose[1]

 if Mode=0 then
  Bulls=0.5*(Abs(Price1-Price2)+(Price1-Price2))
  Bears=0.5*(Abs(Price1-Price2)-(Price1-Price2))
 endif
 if Mode=1 then
  smax=Highest[Length](high)
  smin=Lowest[Length](low)
  Bulls=Price1 - smin
  Bears=smax - Price1
 endif

 AvgBulls=average[Length,ModeMA](Bulls)
 AvgBears=average[Length,ModeMA](Bears)

 SmthBulls=average[Smooth,ModeMA](AvgBulls)
 SmthBears=average[Smooth,ModeMA](AvgBears)
endif

RETURN  SmthBulls coloured(0,0,255,50) style(histogram),  SmthBears coloured(255,0,0,50) style(histogram) , SmthBears coloured(255,0,0) style(line,3), SmthBulls coloured(0,191,255) style(line,3)