[blackcat] L3 Market Sentiment Indicator

28 mag 2022

Level 3

Background

I've been thinking about trying out some technical indicators of market sentiment recently. Of course, this may not be limited to OHLC data, but requires more statistical data for analysis. However, I still wanted to try making a market sentiment indicator with OHLC. In this way, the difference between the two indicators can be compared later.

Function

This market sentiment indicator is functionally divided into two categories: the first is the sentiment line, which is a total of 3 lines. The first line is the yellow aggressive trader sentiment line, usually expressed as a 5-period moving average; the second line is the purple conservative trader interest line, which I used a slightly more complicated algorithm. The third line is the market sentiment line that takes the average of the first two. It is yellow when the market price is rising and purple when the price is falling.

The second type is the pressure line and the support line, a total of four, when they are support lines, the color is green; once they become resistance lines, the color will change from green to red, and show the current price of pressure or support.

Remarks

Feedbacks are appreciated.

20 apr

Note di rilascio

OVERVIEW
The [blackcat] L3 Market Sentiment Indicator provides insights into market sentiment by analyzing different trader behaviors. This indicator combines aggressive and conservative trading styles to generate a comprehensive market sentiment line. Additionally, it identifies key support and resistance levels, helping traders make informed decisions based on market trends 📊💡.

FEATURES

Analyzes two distinct trader groups:

Aggressive Style Trader Group: Uses Simple Moving Average (SMA).
Conservative Style Trader Crowd: Utilizes Exponential Moving Averages (EMA).
Calculates a combined Market Sentiment Line representing overall market mood.

Identifies multiple support and resistance levels:

Support Levels 1 through 4.
Strong Support Level.
Plots clear labels for support/resistance levels and buy/sell signals 🏷️.

Generates alerts when price crosses key support or resistance levels 🔔.

HOW TO USE

Add the indicator to your TradingView chart by selecting it from the indicators list.
Observe the plotted lines indicating market sentiment and support/resistance levels.
Monitor the generated buy ('Buy') and sell ('Sell') labels for potential trade opportunities.
Set up alerts based on the generated signals to receive notifications when conditions are met 📲.
Combine this indicator with other tools for confirmation before making trading decisions.
LIMITATIONS

The indicator relies heavily on moving averages, which might lag in fast-moving markets 🌪️.
False signals can occur in ranging or sideways markets.
Users should always confirm signals with other forms of analysis.
NOTES

Ensure that you have sufficient historical data available for accurate calculations.
Test the indicator thoroughly on demo accounts before applying it to live trading 🔍.
Customize alert conditions as needed to fit your trading strategy.