A sentiment oscillator that measures bullish and bearish market sentiment by analyzing price movements across multiple bars to provide trend and entry/exit signals.
Explore complementary indicator rolesHow it works
The Average Sentiment Oscillator works by calculating bullish and bearish percentages across a group of price bars using two distinct modes. Mode 1 analyzes each bar's OHLC prices individually and averages the sentiment percentages.
Mode 2 treats the entire bar group as a single unit and determines the overall sentiment percentage. These modes can be used separately or combined to provide a comprehensive view of market sentiment
Why it may be useful
This indicator helps traders understand market dynamics by visualizing the balance of power between bulls and bears. By tracking sentiment percentages, traders can identify potential trend shifts, entry and exit points, and assess the relative strength of market movements. The oscillator's ability to highlight overbought and oversold conditions makes it a valuable tool for making more informed trading decisions
When to explore it
The Average Sentiment Oscillator is most effective during trending markets with consistent volume. It works best when used in conjunction with other technical indicators to confirm signals. Traders should pay attention to line crossings over the 50% centerline, divergences between price and oscillator peaks, and extreme levels at 30% and 70% to generate trading strategies
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
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