A macro sentiment indicator that calculates risk appetite by analyzing 14 financial assets across risk-on, risk-off, and relative spread categories to assess overall market conditions.
Explore complementary indicator rolesHow it works
The Risk-On/Risk-Off Score evaluates market sentiment by analyzing 14 key financial components grouped into three categories: risk-on assets, risk-off assets, and risk spreads. Each component receives a score of +1 or -1 based on its performance over a specified timeframe, typically 5 days.
The calculation involves tracking performance of assets like NASDAQ 100, S&P 500, Bitcoin, Gold, and various currency pairs. The total score ranges from -14 to +14, providing a comprehensive view of market risk sentiment
Why it may be useful
This indicator helps traders understand broader market dynamics and sentiment by providing an objective, data-driven assessment of risk appetite. By synthesizing multiple asset classes and their interrelationships, it offers a holistic view beyond individual asset performance.
Traders can use this score to make more informed decisions about position sizing, hedging strategies, and overall market exposure. The score acts as a contextual tool that helps align trading strategies with current market conditions
When to explore it
The Risk-On/Risk-Off Score is most effective during periods of market uncertainty or transition between different economic regimes. It is particularly valuable for swing traders, day traders, and volatility traders who need to quickly assess macro sentiment.
Traders can use this indicator when evaluating potential trade entries, adjusting portfolio risk, or understanding broader market trends. It works best when combined with other technical and fundamental analysis tools
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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.
