Sentiment Indicator
The Sentiment indicator shows the prevalence of bullish and bearish market sentiment in the basement of the price chart.
The balance between the forces bulls и bears is divided by the zero line:
- Positive zone - the market is dominated by bullish sentiment;
- Negative zone - the market is dominated by bearish sentiment.
The Sentiment indicator is presented in two versions - linear and as a histogram.
The direction of the line (histogram) allows you to determine the four phases of the market state:
- Rising bullish sentiment;
- A decrease in bullish sentiment;
- Rising bearish sentiment;
- A decrease in bearish sentiment.
According to ForTrader.org experts, the Sentiment indicator can be used in trend-following trading strategies as a filter.
Other indicators of the relationship between bulls and bears
