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AstrideUnicorn
3 dec 2021 01:24

Sentiment Estimator [AstrideUnicorn] 

Twitter, Inc.NYSE

Beskrivning

Sentiment Estimator is an indicator that estimates market sentiment using only its pricing data. It counts bullish and bearish candles in a rolling window and calculates their relative values as percentages of the total amount of candles in the window. Market sentiment shows the direction in which the market is biased to move or the current trend direction. Extreme values of the market sentiment are contrarian signals. When the market sentiment is too bullish, it is time to sell and vice versa.


HOW TO USE

Sentiment Estimator plots a pair of green and red circles for each candle. They represent bullish and bearish sentiments, respectively.
The vertical positions of the circles show corresponding sentiment values in percentage units. For example, if a green circle's height is 60, the market is 60% bullish. In this case, the red circle's height will be 40, as bullish and bearish parts of the market sentiment sum to 100%.

The blue line plotted at the 50% level shows the neutral sentiment level. If a green circle is above the blue line, the prevailing market sentiment at that time is bullish, and the market is biased to move up. If a red one is above, the market has predominantly bearish sentiment and is prone to move down.

The red level shows extreme sentiment level. If a green or red circle is above this line, it means that the market is extremely bullish or bearish, respectively. It is a contrarian signal, and one can expect a reversal soon. In this case, a blue label with the text "reversal expected" is shown.


SETTINGS

Timeframe - allows choosing a timeframe other than the chart's one for the indicator calculation.

Look-Back Window - sets the historical window length used to perform the calculations. You can adjust the window to get the best results for a particular market or timeframe.




Versionsinformation

Added the ability to set a value for the extreme sentiment level in the script's settings.
Kommentarer
UnknownUnicorn26637209
Great work!
AstrideUnicorn
@Kacper_wasik, Thank you! Glad you enjoy :)
PapaAlan
Hello, I realize it's been a while since the release of this indicator but I'm wondering how you picked that 61.5 for the extreme sentiment level? Arbitrary or some research you found or what?
just_naba
its great done many thanks ..
AstrideUnicorn
@naba_naif, thank you! Much appreciated
redlinesd
No good
AstrideUnicorn
@redlinesd, I can’t agree with you on this point. Candle counting indicators are pretty common and many people, myself included, find them really useful.

You can write me a direct message to discuss the problem you have with this indicator in more detail. I could also help you to find appropriate settings for your market.
Mer