Market Sentiment Fear and Greed [AlgoAlpha]

Jul 28

Unleash the power of sentiment analysis with the Market Sentiment Fear and Greed Indicator! 📈💡 This tool provides insights into market sentiment, helping you make informed trading decisions. Let's dive into its key features and how it works. 🚀✨

Key Features 🎯

• 🧠 Sentiment Analysis: Calculates market sentiment using volume and price data. 📊
  
• 📅 Customizable Lookback Window: Adjust the lookback period to fine-tune sensitivity. 🔧
  
• 🎨 Bullish and Bearish Colors: Visualize trends with customizable colors. 🟢🔴
  
• 🚀 Impulse Detection: Identifies bullish and bearish impulses for trend confirmation. 🔍
  
• 📉 Normalized Sentiment Index: Offers a normalized view of market sentiment. 📊
  
• 🔔 Alerts: Set alerts for key sentiment changes and trend impulses. 🚨
  
• 🟢🔴 Table Visualization: Displays sentiment strength using a gradient color table. 🗂️
  

How to Use 📖
Maximize your trading potential with this indicator by following these steps:

1. 🔍 Add the Indicator: Search for "Market Sentiment Fear and Greed [AlgoAlpha]" in TradingView's Indicators & Strategies. Customize settings like the lookback window and trend breakout threshold to suit your trading strategy.
   
2. 📊 Monitor Sentiment: Watch the sentiment gauge and plot changes to detect market sentiment shifts. Use the Normalized Sentiment Index for a more balanced view.
   
3. 🚨 Set Alerts: Enable alerts for sentiment flips and trend impulses to stay ahead of market movements.
   

How It Works ⚙️
The indicator calculates market sentiment by averaging the volume and closing prices over a user-defined lookback period, creating a sentiment score. It differentiates between bullish and bearish sentiment by evaluating whether the closing price is higher or lower than the opening price, summing the respective volumes. The true sentiment is determined by comparing these summed values, with a positive score indicating bullish sentiment and a negative score indicating bearish sentiment. The indicator further normalizes this sentiment score by dividing it by the EMA of the highest high minus the lowest low over double the lookback period, ensuring values are constrained between -1 and 1. Bullish and bearish impulses are identified using Hull Moving Averages (HMA) of the positive and negative sentiments, respectively. When these impulses exceed a calculated threshold based on the standard deviation of the sentiment, it indicates a significant trend change. The script also includes a gradient color table to visually represent the strength of sentiment, and customizable alerts to notify users of key sentiment changes and trend impulses.

Unlock deeper insights into market sentiment and elevate your trading strategy with the Market Sentiment Fear and Greed Indicator! 📈✨

Jul 29

Release Notes

Added the option to customize the Gauge position.