A trading script that analyzes market probabilities by tracking previous day's price levels and evaluating market sentiment through risk-on/risk-off indicators.
Explore complementary indicator rolesHow it works
The script first tracks price movements relative to the previous day's high and low, calculating probabilities for potential upward or downward price movements. It analyzes how frequently the current price exceeds prior day's price levels to establish baseline probability calculations.
Additionally, the script integrates market sentiment indicators like the Fear & Greed Index, VIX, and other market indicators to dynamically adjust these probabilities. By evaluating the current market state as either 'Risk On' or 'Risk Off', the script modifies the probability calculations, providing traders with a more nuanced understanding of potential market direction.
Why it may be useful
This trading signal provides traders with a sophisticated method of understanding market dynamics beyond simple price action analysis. By combining historical price behavior with current market sentiment indicators, traders gain insights into potential market movements that traditional technical analysis might miss.
The script's ability to dynamically adjust probabilities based on risk sentiment offers traders a more comprehensive view of market conditions. This approach helps traders make more informed decisions by considering not just price levels, but also the broader market context and sentiment.
When to explore it
The signal is most effective in volatile market conditions where sentiment and momentum play crucial roles in price movement. Traders can benefit from this approach during periods of market uncertainty, economic news events, or when transitioning between market trends.
It is particularly useful for traders who want a more holistic view of market conditions, combining quantitative price analysis with qualitative sentiment indicators. The script works best when manually updated with current market indicators, making it ideal for active traders who closely monitor market dynamics.
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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.
