In order to make an optimal trading decision, it is necessary to conduct a qualitative analysis of the market situation. And one of the tools to help you do this is the Sentiment indicator. I’ll tell you about him today. Trading positions are opened in the direction of the prevailing trend. And you can use the Sentiment indicator to determine which side has the strength, the “bears” or “bulls”. It has two versions depending on the way it is displayed: line and histo. Which one to use is for the trader to decide.And this is how the indicator looks on the chart:
Indicator parameters
Sentiment indicator has “code-block code-block-2″ style=”margin: 8px auto; text-align: center; display: block; clear: both;”>The main one is Period.
It is the one that determines the number of candlesticks that the indicator will use in
calculations. Way to build a histogram
or lines are defined by the Mode parameter. You can choose one of the three
options: fast, slow and balanced. If the indicator reacts to changes in the market, it will
fast, there will be a lot of signals, but
and the percentage of false recommendations to enter the market will also be high. Correspondingly…
on the contrary. When selected in the slow settings, the quality
the signals will improve, but they will be few.Parameter Number of bars to display allows you to specify how many candlesticks to build
a line or a histogram. If set to 0, the line and columns will be
are built on the whole story.
How to trade on the Sentiment indicator
The rules are very simple.
Buy when a column of blue or
the line crosses level 0 from bottom to top. Sell if below zero
a red bar appears or the indicator line crosses this level from top to bottom.
The columns are purple or brown, indicating an uncertainty of
of the market. This means that you should refrain from opening trading positions. They’re… They’re…
are also used to close active orders. Besides, the histogram can also be
used to track divergence. The Sentiment indicator proved to be good in strategies where it was used as a filter. If it is used as the main tool of market analysis, it is necessary to filter signals with the help of other indicators. Try different options and test the work of Sentiment with the help of demo account.Indicator in MT4 is set according to the standard scheme. The archive I’ll give you a link to below contains 2 files: the histogram version and the line version.SentimentDownload Inga Fedorova07.06.2019