How to Read Market Regime, Momentum, Flow, Relative Strength and Entry Conditions
The AKMelytics Market Intelligence Dashboard is designed to provide a fast overview of the current market environment.
Instead of switching between multiple indicators, the dashboard brings together several important analytical categories in one location.
These can include:
- Market Regime
- Current Signal
- Momentum
- Market Flow
- Accumulation / Distribution
- Relative Strength
- Trend
- Market Flow Ribbon
- Master Market State
- Financial information
- Entry conditions
- AKM condition
The dashboard should not be used by looking for one green box and immediately taking a trade.
Its real purpose is to answer:
“How many independent areas of market behaviour are currently supporting the same directional thesis?”
Understanding the Dashboard Structure
The dashboard can be viewed as three analytical layers.
Row 1 — Market Intelligence
The first row summarizes the current market environment.
It helps answer:
What is the market doing now?
This area includes readings such as:
- Regime
- Signal
- Momentum
- Market Flow
- Accumulation
- Relative Strength / Sector behaviour
- Ribbon condition
- Master market state
Row 2 — Financial & Relative-Strength Context
Where supported financial data is available, the second row provides additional company and valuation context.
This may include:
- P/E
- P/B
- Free Cash Flow Yield
- ROE
- Debt-to-Equity
- Relative Strength
- Fair-value reference
- Trend
- Valuation condition
- Risk
- Relative-strength mode
These readings are primarily useful for equities.
Some fields may display N/A when the required financial data is unavailable.
Row 3 — Entry Conditions
The third row focuses on whether important technical conditions are currently satisfied.
Depending on the AKMelytics version, this can include:
- MA structure
- Price position
- Watch condition
- Bullish confluence
- Trend confirmation
- Pullback condition
- Market-flow qualification
- MA filter
- Pullback window
- AKM direction
- Current entry status
This row helps explain why a signal is or is not currently qualified.
1. Market Regime
The Regime reading provides a broad classification of the current market environment.
It combines wider market-flow and confirmation information to help determine whether conditions are generally:
Bullish
Developing
Neutral
or
Weak / Bearish
The Regime should be interpreted as the broad background environment.
For example:
A Bull signal inside a strong bullish Regime has different context from a Bull signal occurring while the Regime remains weak.
Bullish Regime
A bullish Regime suggests that several broader market factors are supporting positive conditions.
These may include:
- Positive Market Flow
- Improving participation
- Accumulation
- Positive trend structure
- Supportive momentum
This does not mean that price must continue higher.
It means the overall environment is currently more favourable to bullish analysis.
Developing or Transitional Regime
A developing Regime indicates that market conditions are improving or deteriorating but have not yet established a strong directional state.
This can occur during:
- Base formation
- Consolidation
- Early accumulation
- Early distribution
- Trend transitions
- Pullbacks
A transitional Regime often requires greater attention to AKM and market structure.
Weak / Bearish Regime
A weak or bearish Regime indicates that the broader technical environment is deteriorating.
This may include:
- Negative Market Flow
- Weak momentum
- Distribution
- Bearish trend structure
- Declining participation
Bullish signals appearing during this condition should generally be evaluated more cautiously.
2. Signal
The Signal field shows the current qualified setup condition.
Depending on the active market state, it may display readings such as:
Bull
Bear
Pullback Bull
Watch
Wait
The Signal field is different from the broader Market State.
Signal represents a current setup or event.
The Market State represents the broader condition that remains active after the signal.
Watch
A Watch condition means AKMelytics has detected developing characteristics worth monitoring, but the full directional confirmation is not yet present.
This may occur when:
- Accumulation is improving
- Momentum is developing
- Relative strength is improving
- Market Flow is not fully confirmed
- Price has not yet produced the required confirmation
Think of Watch as:
“Conditions are developing—monitor the chart.”
Not:
“Enter now.”
Wait
Wait is one of the most important dashboard readings.
It means the required conditions are not currently aligned strongly enough to qualify a directional setup.
Wait is not a failure of the indicator.
It is a deliberate analytical outcome.
3. Momentum
The Momentum field summarizes the strength and development of directional movement.
This reading can incorporate information such as:
- Price acceleration
- Volume acceleration
- Volatility expansion
- Breakout pressure
- Trend acceleration
Higher momentum conditions suggest that directional behaviour is becoming stronger.
Lower momentum conditions indicate that market movement may lack sufficient acceleration.
Important
Momentum is not the same as AKM.
The dashboard Momentum classification is a broader rules-based momentum score.
AKM is the dedicated adaptive kernel-regression momentum engine.
The two should be used together rather than treated as identical measurements.
4. Market Flow
The Flow field evaluates whether price and volume behaviour is showing stronger market participation.
It can consider factors such as:
- Relative volume
- Range expansion
- OBV direction
- OBV acceleration
- Trend structure
- Strong or weak closes
A stronger Flow reading suggests that the current move has greater participation.
A weak Flow reading suggests that price movement may lack convincing support.
What Does Strong Flow Mean?
Strong Flow may occur when:
- Volume expands
- Price closes strongly
- OBV improves
- Trend conditions support the move
- Range expands in the direction of the trend
This does not prove that institutions are trading.
It is a technical market-participation proxy.
5. Accumulation / Distribution
The Accumulation field helps identify whether market behaviour appears more consistent with buying pressure or selling pressure.
Accumulation-style conditions can include:
- Rising volume
- Improving OBV
- Bullish breakout behaviour
- Strong closing prices
- Positive trend structure
Distribution-style conditions can include:
- Increasing selling volume
- Declining OBV
- Breakdown pressure
- Weak closes
- Bearish trend structure
These terms describe observable market behaviour.
AKMelytics does not have access to private institutional transaction data.
6. Relative Strength
Relative Strength compares the performance of the selected symbol against a user-selected benchmark.
It helps answer:
“Is this stock outperforming or underperforming the broader market?”
A positive relative-strength reading may indicate that the instrument is outperforming its benchmark.
A negative reading may indicate underperformance.
Why Relative Strength Matters
Suppose two stocks rise by 5%.
Stock A rises while the benchmark rises only 1%.
Stock B rises while its benchmark rises 10%.
Although both stocks increased in price, Stock A has demonstrated stronger relative performance.
Relative Strength helps AKMelytics distinguish between those situations.
Relative-Strength Modes
Depending on the current market condition, AKMelytics may classify relative performance into states such as:
Leader
Strong relative outperformance with supportive momentum.
Outperforming
Positive relative performance that continues improving.
Positive
Outperforming the benchmark, but without stronger leadership characteristics.
Lagging
Underperforming the benchmark.
Relative Strength should always be interpreted using a benchmark that is relevant to the instrument.
7. Market Flow Ribbon
The dashboard also displays the current Market Flow Ribbon state.
This allows the user to confirm the ribbon condition without relying only on chart colour.
Broadly:
Bullish Ribbon
Positive broader market-flow environment.
Transitional Ribbon
Market conditions are developing or mixed.
Bearish Ribbon
Negative broader market-flow environment.
For a full explanation, see the Market Flow Ribbon Guide.
8. Master Market State
The Master field represents the persistent directional state of AKMelytics.
It can generally be understood as:
Bull
Wait
Bear
Unlike an individual signal, the Master state remains active until the underlying conditions justify a transition.
Bull State
The broader directional environment remains bullish after a qualifying Bull activation.
This does not mean a new entry exists on every candle.
It means the market remains classified within the bullish state.
Bear State
The broader directional environment remains bearish after a qualifying Bear activation.
Again, this is a market-state classification rather than a repeated entry signal.
Wait State
Neither Bull nor Bear structure currently satisfies the required state conditions.
This often occurs during transition or consolidation.
The current implementation maintains this state logic using confirmed bar transitions rather than simply changing on every intrabar fluctuation.
9. P/E Ratio
The P/E field displays the price-to-earnings ratio when supported financial data is available.
It compares the current share price with reported earnings per share.
P/E should not be interpreted in isolation.
Different industries commonly trade at very different valuation multiples.
10. P/B Ratio
The P/B field compares market price with book value per share.
This metric may be more relevant for certain industries than others.
A low P/B value does not automatically mean a stock is undervalued.
11. Free Cash Flow Yield
The FCF reading compares free cash flow per share with the current market price.
A higher positive free-cash-flow yield can indicate that a company generates more free cash flow relative to its valuation.
However, company quality, growth expectations and capital requirements must also be considered.
12. Return on Equity
ROE measures net income relative to shareholder equity.
It can help assess how effectively a company generates profit from its equity base.
ROE should normally be compared with:
- The company’s own historical performance
- Industry peers
- Debt levels
13. Debt-to-Equity
The D/E field provides a basic measure of debt relative to shareholder equity.
Higher leverage is not automatically negative.
Capital-intensive industries may naturally operate with more debt than others.
This field provides contextual information rather than a trading signal.
14. Fair-Value Reference
AKMelytics may display a mathematical fair-value reference based on available earnings and book-value information.
This should be treated only as a valuation reference.
It is not an analyst price target and does not account for every factor influencing company value.
15. Valuation Condition
Where financial data is available, AKMelytics may classify the current price relative to its valuation reference.
Possible interpretations include:
- Undervalued
- Fair
- Overvalued
This is a simplified model.
Do not use it as the sole reason to buy or sell a stock.
16. Financial Risk
The dashboard may also flag valuation-related risk when price becomes significantly extended relative to its internal valuation reference.
This does not measure total investment risk.
It does not account for factors such as:
- Business quality
- Earnings uncertainty
- Macroeconomic risk
- Liquidity
- Corporate events
It is a valuation-context field only.
17. Trend
The Trend field summarizes the broader price relationship with important trend references.
Typical classifications may represent:
Bull
Price structure supports the broader bullish trend.
Early
Trend development may be improving but remains incomplete.
Weak
The broader bullish trend requirements are not currently satisfied.
Trend should be interpreted alongside AKM and Market Flow.
18. MA Condition
The Entry Conditions row displays the relationship between the faster and slower moving averages.
A bullish MA condition typically means:
MA21 > MA144
A bearish condition generally represents the opposite relationship.
Moving averages provide trend context rather than independent entry instructions.
19. Price Position
The Price field indicates whether price is positioned favourably relative to important moving averages.
For bullish analysis, price above both trend references can provide stronger confirmation.
Price below them may indicate weaker structure.
20. Watch Condition
The Watch field indicates whether the accumulation/watch engine has detected sufficient developing conditions.
A positive Watch condition can include combinations of:
- Trend improvement
- Volume participation
- OBV strength
- Breakout behaviour
- Relative strength
Watch does not mean a final Bull setup has already been confirmed.
21. Bullish Confluence
This field shows whether the multi-factor bullish confirmation engine is currently active.
The confluence engine can evaluate several momentum and trend components within a limited confirmation period.
Its purpose is to determine whether multiple bullish technical conditions are occurring close enough together to remain relevant.
22. Trend Bull
The Trend Bull field shows whether the dedicated bullish trend-confirmation condition is active.
It generally requires:
- Positive AKM
- Valid momentum timing
- A strong bullish confirmation candle
- Breakout of recent price structure
- No prior momentum invalidation
This is a more specific condition than simply having bullish momentum.
23. Pullback Bull
The Pullback Bull field indicates whether the requirements for a bullish retracement setup are currently satisfied.
This generally requires:
- A previous valid Bull condition
- Price retracement toward the Market Flow Ribbon
- A bullish recovery
- Valid ribbon conditions
- A still-active pullback window
Pullback Bull is therefore state-dependent.
24. Market-Flow Qualification
The dashboard may show whether a setup is occurring under the permitted bullish or transitional Market Flow condition.
This helps users determine whether the broader market regime supports the setup.
A valid technical setup occurring in the wrong broader regime may not qualify as a final AKMelytics condition.
25. MA Filter
The MA Filter displays whether the optional moving-average confirmation condition passes or fails.
If the filter is enabled, bullish setups may require:
- MA21 above MA144
- Price above both moving averages
Bearish setups can apply the corresponding bearish relationship.
If the filter is disabled, this field should not be treated as an additional mandatory requirement.
26. Pullback Window
The Pullback Window indicates whether a previous Bull setup remains recent enough for the Pullback Bull engine.
Active
The current chart remains within the permitted post-Bull period.
Off
The previous Bull event is now too old for a new Pullback Bull condition.
This prevents a much later retracement from being incorrectly associated with an old setup.
27. AKM Condition
The AKM dashboard field summarizes the current direction of Adaptive Kernel Momentum.
A bullish reading indicates positive qualifying AKM conditions.
A weak or bearish reading means the bullish AKM requirement is not presently satisfied.
For deeper interpretation, always examine:
- AKM direction
- Acceleration
- Regression quality
- AKM Signal relationship
rather than relying only on this simplified dashboard field.
28. Entry
The Entry field summarizes the most relevant active entry condition.
Depending on the market, this can show:
Bull
Bear
Pullback Bull
Wait
This field is designed as a quick summary.
It should always be interpreted together with Regime, AKM, Market Flow and market structure.
The current code prioritizes bearish entry conditions before bullish conditions when determining the displayed entry state.
How to Read the Dashboard Correctly
The best way to read the dashboard is from broad context toward specific confirmation.
Step 1 — Start With Regime
Is the market environment bullish, transitional or weak?
Step 2 — Check Momentum and AKM
Is directional momentum supporting the Regime?
Step 3 — Check Flow and Accumulation
Is participation supporting the move?
Step 4 — Check Relative Strength
Is the symbol outperforming or underperforming its benchmark?
Step 5 — Check Trend
Does price structure agree with the directional thesis?
Step 6 — Review Entry Conditions
Are the required confirmation layers currently active?
Step 7 — Check Master State and Entry
Has AKMelytics actually qualified the directional setup?
This creates a more disciplined interpretation than simply looking for the most green dashboard cells.
Example: Strong Bullish Dashboard
A stronger bullish environment might look approximately like this:
Regime: Bullish
Momentum: Strong
Flow: Improving
Accumulation: Positive
Relative Strength: Outperforming
Ribbon: Bullish
Master: Bull
MA: Bullish
Price: Above MA
Trend Bull: Yes
AKM: Bullish
Entry: Bull
This represents broad analytical agreement.
It still does not guarantee that the trade will succeed.
Example: Developing Bullish Setup
A developing setup may look like:
Regime: Transitional
Momentum: Improving
Flow: Early
Accumulation: Building
Relative Strength: Improving
Ribbon: Transitional
Master: Wait
AKM: Bullish
Entry: Wait
This is important.
The market may be improving, but the dashboard is telling the trader that full confirmation has not yet occurred.
Example: Weak Bull Signal
Suppose:
AKM: Bullish
but:
Regime: Weak
Flow: Low
Accumulation: Weak
Relative Strength: Lagging
Trend: Weak
This would provide much less bullish confluence.
A trader should not treat the AKM reading alone as sufficient confirmation.
Example: Bearish Alignment
A stronger bearish condition may include:
Regime: Bearish
Momentum: Negative
Flow: Selling pressure
Accumulation / Distribution: Distribution
Relative Strength: Lagging
Ribbon: Bearish
Master: Bear
Trend: Weak / Bearish
Entry: Bear
This represents broader bearish agreement.
What Does Green Mean?
Green normally indicates a supportive or positive condition.
However:
Green does not mean guaranteed profitable trade.
It means that particular analytical category currently satisfies its positive classification.
Always interpret the dashboard as a collection of evidence.
What Does Orange or Transitional Mean?
Orange or transitional readings often indicate:
- Developing conditions
- Incomplete confirmation
- Mixed market behaviour
- Improving or deteriorating conditions
These states can be particularly useful for identifying transitions before full confirmation.
What Does Red Mean?
Red generally indicates:
- Weakness
- Bearish conditions
- Failed confirmation
- Distribution
- Risk
- Negative trend characteristics
Again, this does not automatically mean the trader must sell.
It provides analytical context.
Do All Dashboard Boxes Need to Be Bullish?
No.
Markets rarely provide perfect alignment.
AKMelytics is designed to organize information, not require every field to display the same colour.
Some fields also measure different time horizons and different types of information.
For example:
- Momentum can improve before Market Flow.
- Market Flow can remain bullish while short-term momentum weakens.
- Relative strength can improve before trend confirmation.
- Fundamental valuation can remain expensive during a technically strong trend.
The key is to understand which conditions matter for the particular setup you are evaluating.
Technical vs Fundamental Dashboard Information
The dashboard contains two broad types of information.
Technical
Examples include:
- Regime
- Momentum
- Flow
- Accumulation
- Relative Strength
- Ribbon
- Master State
- MA
- Price Position
- AKM
- Entry Conditions
These readings can update frequently as market prices change.
Fundamental
Examples can include:
- P/E
- P/B
- FCF Yield
- ROE
- Debt-to-Equity
- Fair-value reference
These normally change much less frequently because they depend on reported company information.
Do not expect the fundamental row to react to every candle in the way the technical row does.
Important: Financial Data May Be N/A
TradingView does not provide the same financial information for every instrument.
Therefore, some fields may display N/A for:
- Forex
- Cryptocurrencies
- Indices
- Futures
- Certain international securities
- Symbols with incomplete financial information
This does not necessarily indicate an AKMelytics error.
It means the required financial data is unavailable for that symbol.
Important: Volume Quality
Several dashboard measurements depend on volume.
These include:
- Market Flow
- Accumulation
- Distribution
- Relative volume
- OBV behaviour
- Breakout participation
Poor or unavailable volume data can reduce the usefulness of these classifications.
For best results, use instruments with reliable volume information.
Important: Benchmark Selection
Relative Strength and sector-style comparison depend on the benchmark selected in AKMelytics settings.
An inappropriate benchmark can produce misleading relative-performance readings.
For example:
A Malaysian stock should normally be compared with a relevant Malaysian market or sector benchmark rather than an unrelated foreign index.
Likewise, a US technology stock may benefit from comparison against a broad US index or an appropriate technology benchmark.
Important: Dashboard Values Can Change During an Open Candle
The dashboard evaluates current market information.
While a candle remains open:
- Price can move
- Volume can increase
- AKM can change
- Market Flow can change
- Entry conditions can appear or disappear
For more stable interpretation, evaluate the dashboard after the bar has closed.
Confirmed directional state transitions are designed around closed-bar logic, but developing dashboard information can still update intrabar.
Common Dashboard Mistakes
Looking Only at the Master Box
The Master state tells you the current directional classification.
It does not explain the quality of the setup.
Check the surrounding evidence.
Looking Only at the Entry Box
The Entry field summarizes an active condition.
It should not replace complete analysis.
Counting Green Boxes
AKMelytics is not designed as:
“Eight green boxes = Buy.”
Different fields perform different functions.
Understand why each condition is positive.
Ignoring Transitional Readings
Transitions often contain valuable information about a market that is improving or deteriorating.
Assuming Financial Value Means Market Timing
An undervalued stock can continue falling.
An expensive stock can continue rising.
Technical timing and valuation are separate analytical questions.
Using the Wrong Benchmark
Relative strength is only meaningful when the comparison instrument makes sense.
Recommended Dashboard Workflow
When analysing a new chart, use this sequence:
Regime
↓
Momentum + AKM
↓
Market Flow
↓
Accumulation / Distribution
↓
Relative Strength
↓
Trend Structure
↓
Entry Conditions
↓
Master State
↓
Target Lvl + Risk Lvl
This keeps the analysis focused on market context before entry timing.
Key Takeaway
The AKMelytics Market Intelligence Dashboard is designed to provide a multi-dimensional view of the market.
Do not ask:
“Which box tells me to trade?”
Instead ask:
“What story are the dashboard components telling together?”
A stronger setup generally occurs when:
Market Regime + AKM + Flow + Participation + Relative Strength + Trend + Entry Confirmation
begin supporting the same directional thesis.
The dashboard is most useful when it helps traders understand why a setup is developing—not simply when it displays a Bull or Bear condition.
Next Guide
Target Lvl & Risk Lvl Guide
The next guide explains how AKMelytics provides volatility-adjusted Target and Risk references for qualified Bull and Bear setups.
You will learn:
- How Target Lvl works
- How Risk Lvl works
- Bullish and bearish calculations
- ATR and volatility
- Risk/reward analysis
- Why Target Lvl is not a guaranteed target
- Why Risk Lvl is not a complete stop-loss strategy
- How to combine the levels with market structure
→ Continue to: Target Lvl & Risk Lvl Guide
Previous Guide
Educational Use & Risk Disclaimer
The AKMelytics Market Intelligence Dashboard is provided for technical-analysis, research and educational purposes only.
Dashboard classifications, scores, Bull or Bear states, financial metrics, relative-strength readings and entry conditions do not constitute financial, investment or trading advice.
The dashboard does not guarantee future market direction or profitable trades.
Financial information may be delayed, incomplete or unavailable for some symbols.
Trading and investing involve risk, including possible loss of capital. Users remain responsible for their own research, position sizing, trade decisions and risk management.
