Trend Sentiment Indicator Script For Tradingview Download

What is market sentiment and how do you trade it?

market sentiment is used to identify trends and join the herd. A trend is the general price direction of a market or asset. Determining the trend direction is important for maximizing the potential profit in a trade.

What is A Sentiment Indicator?

There are many different types of sentiment indicators, such as consumer behavior and beliefs, and investor behavior and beliefs.

• Extreme readings on a sentiment indicator cause some traders to take a contrarian view. For example, extreme optimism is usually followed by pessimism, and vice versa.
  

• Sentiment indicators are used to analyze trends, assets, and the economy from a perspective of the participants invoved, instead of just looking the asset, trend or economy itself.
  

• When a sentiment indicator is moving in the same direction as what it is analyzing, that typically helps confirm that trend.
  

Other well known sentiment indicators

CBOE Volatility Index (VIX)

New York Stock Exchange (NYSE) High/Low Indicator

NYSE 200-day Moving Average

Odd-Lot Trading Statistics

The Commitment of Traders Report