A sentiment indicator that calculates bullish and bearish momentum by analyzing volume and price changes, providing visual signals and trend insights for traders.
Explore complementary indicator rolesHow it works
The indicator uses a configurable length parameter to analyze multiple price bars, calculating sentiment through volume-weighted price changes. For bullish sentiment, it sums the volume multiplied by positive price changes (close price higher than open price), while bearish sentiment calculates the volume multiplied by negative price changes.
The total values are then divided by the total volume of the selected bars, creating separate calculations for bullish and bearish momentum. These calculations are plotted as color-coded lines, with green representing bullish sentiment, red representing bearish sentiment, and a blue line showing the difference between the two values.
Why it may be useful
The sentiment indicator provides traders with a nuanced view of market dynamics by combining volume and price movement analysis. By visualizing bullish and bearish momentum, traders can quickly assess the underlying strength of market trends and potential directional shifts.
The color-coded lines and arrow signals offer an intuitive way to interpret market sentiment, helping traders make more informed decisions about potential entry and exit points. This approach goes beyond simple price analysis by incorporating volume data, which can provide deeper insights into market psychology and potential trend reversals.
When to explore it
This sentiment indicator is most effective in markets with clear directional movements and significant volume fluctuations. Traders can use it across various timeframes, from short-term scalping to longer-term swing trading, to identify potential trend changes and momentum shifts.
The indicator works best when combined with other technical analysis tools, helping to confirm signals and provide additional context. It is particularly useful during periods of market volatility, where volume and price changes can reveal important insights about trader sentiment and potential future price movements.
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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.
