# Market Sentiment Technicals

Market Sentiment Technicals condenses a full panel of classic techniques (momentum oscillators, trend tools, and market structure) into one normalized sentiment value. A per-indicator histogram panel, a sentiment meter, and an oscillator with divergence detection reveal at a glance whether conditions lean bullish, bearish, or sideways.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Jun 11, 2024.
- Access: free.
- Concepts: [Confluence & Scoring Systems](https://www.luxalgo.com/library/concept/confluence-and-scoring-systems/) (primary), [Composite Oscillators](https://www.luxalgo.com/library/concept/composite-oscillators/)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn3fou004rvhsgedq19y8n
- Page: https://www.luxalgo.com/library/indicator/market-sentiment-technicals/

**Market Sentiment Technicals** answers a single question: what does the weight of the technical evidence say? It normalizes and averages momentum oscillators (RSI, Stochastic %K, Stochastic RSI Fast, CCI, Bull Bear Power), trend tools (moving averages, Bollinger Bands, Supertrend, linear regression), and price action market structures into one sentiment value, [confluence scoring](https://www.luxalgo.com/library/concept/confluence-and-scoring-systems/) in indicator form. Three displays carry the result: a per-component histogram panel, a sentiment meter, and an oscillator.

## How to Trade the Market Sentiment Technicals?

- **Histogram panel**: normalized sentiment per component plus their synthesized average. See which techniques agree and which dissent.
- **Sentiment meter**: the averaged reading condensed into a quick bullish, sideways, or bearish verdict.
- **Oscillator extremes**: current and historical strength expose overbought and oversold conditions before potential reversals.
- **Divergence**: price action that fails to match the oscillator flags a possible trend change.

Trend components are normalized from their own buy and sell signals: price is tracked against the extremes set since the last flip, then smoothed by an adjustable simple moving average of 3 periods.

## Market Sentiment Technicals Settings

- **Timeframe**: the timeframe sentiment is calculated on; lower selections revert to the chart's own.
- **Horizontal Offset**: distance of the visual components from the main chart.
- **Indicators Sentiment Panel**, **Market Sentiment Meter**, **Market Sentiment Oscillator**: independent visibility toggles, refined by **Panel Height**, **Oscillator Height**, **Oscillator Line Width**, and **Show Divergence**.
- **Source**, **Length**, **Smoothing**: per-component calculation inputs, plus a dedicated normalization **Smoothing** for the trend indicators.

## Frequently Asked Questions

### Why aggregate instead of reading each indicator separately?

A [composite reading](https://www.luxalgo.com/library/concept/composite-oscillators/) filters the noise of any single input while the histogram panel keeps every component auditable. Mind the limits, though: it is built from historical price data, and news or macro shocks can override what the technicals suggest.

### Can the sentiment be displayed differently?

Each display toggles independently: run just the meter, the oscillator alone, or the full stack. For a radial alternative, [a circular barplot of oscillator sentiment](https://www.luxalgo.com/library/indicator/circular-barplot-oscillators-sentiment/) presents a similar read in a different shape.

### What does it cost to use Market Sentiment Technicals?

Nothing. It's a free LuxAlgo Library indicator available from this page. Quant, our coding agent, can run and backtest it right here as well. You can also copy the source code from this page and run it anywhere Pine Script® runs.

## Related indicators

- [Signals & Overlays](https://www.luxalgo.com/library/indicator/luxalgo-signals-overlays/) (Confluence & Scoring Systems): markdown at https://www.luxalgo.com/library/indicator/luxalgo-signals-overlays.md
- [Oscillator Matrix](https://www.luxalgo.com/library/indicator/luxalgo-oscillator-matrix/) (Confluence & Scoring Systems): markdown at https://www.luxalgo.com/library/indicator/luxalgo-oscillator-matrix.md
- [Signal Forge](https://www.luxalgo.com/library/indicator/signal-forge/) (Confluence & Scoring Systems): markdown at https://www.luxalgo.com/library/indicator/signal-forge.md
- [Omni-Flow Consensus](https://www.luxalgo.com/library/indicator/omni-flow-consensus/) (Confluence & Scoring Systems): markdown at https://www.luxalgo.com/library/indicator/omni-flow-consensus.md
- [LuxAlgo - Screener (S&O)](https://www.luxalgo.com/library/indicator/luxalgo-screener-s-o/) (Confluence & Scoring Systems): markdown at https://www.luxalgo.com/library/indicator/luxalgo-screener-s-o.md
- [LuxAlgo - Screener (OSC)](https://www.luxalgo.com/library/indicator/luxalgo-screener-osc/) (Composite Oscillators): markdown at https://www.luxalgo.com/library/indicator/luxalgo-screener-osc.md
- [RSI Multi Length](https://www.luxalgo.com/library/indicator/rsi-multi-length/) (Composite Oscillators): markdown at https://www.luxalgo.com/library/indicator/rsi-multi-length.md
- [SuperTrend Polyfactor Oscillator](https://www.luxalgo.com/library/indicator/supertrend-polyfactor-oscillator/) (Composite Oscillators): markdown at https://www.luxalgo.com/library/indicator/supertrend-polyfactor-oscillator.md

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Source: https://www.luxalgo.com/library/indicator/market-sentiment-technicals/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/