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Basically, you can use both. The difference between them is that "Establish band" is focused on human EEG. In order to recognize human Delta wave and Alpha waves easily, some extra logics are added to "Establish band". Therefore, "Free band" is more suitable than "Establish band" for animal EEG.
"M" stands for "Movement", which is mainly used in human sleep analysis. It is rarely used in animal sleep analysis. You can erase "M" from the hypnogram by the following steps: