Market Sentiment 2.0
This indicator evaluates the market sentiment using raw price action measurements, and it is an amazing trading confirmation. It can be used to take a trend-trade approach or a contrarian approach using reversal patterns.
- Find early reversals
- Confirm short-term trades
- Detect indecision on the market
- Take contrarian trades near support and resistance levels
- Trade inside bars confirmed by overall direction of the market
The overall attitude of market participants towards the instrument is portrated using a colored oscillator. The basic usage is the following:
- You can buy when the histogram is green
- You can sell when the histogram is red
- Contrarians can do the opposite near support and resistance lines
- Does the indicator repaint?
- No, the indicator does not repaint.
- Which are the input parameters?
- There are only two input parameters, fast and slow moving average.