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Market Sentiment Technicals

By LuxAlgoJun 11, 2024

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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 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

Free on Vela

Run it on Vela. Go further with a paid plan.

  • Up to 500 strategy alerts, with webhook automation
  • Up to 10× the chart history of Free
  • Orderflow lookback up to full history
  • Up to 100,000 monthly credits for Quant to customize it
  • Futures data alongside crypto, stocks, forex and commodities
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Also works on

TradingView
Original indicatorBuilt in-house by LuxAlgo

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