Market Sentiment Indicator

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Screenshot of Market Sentiment Indicator indicator

General Idea

This indicator combines three key market metrics—price momentum, volume strength, and oscillator readings—into a single composite score ranging from 0 to 100. The result is a "sentiment gauge" that helps traders quickly assess whether the market is bullish, bearish, or neutral at any given moment. Think of it as a dashboard that consolidates multiple signals into one easy-to-read number.

How It Works

The indicator calculates a sentiment score by evaluating:

Price Change: Recent price movement is weighted heavily (2x multiplier), so strong upward moves push the score higher while sharp declines drag it lower.
Volume Confirmation: When price moves are accompanied by above-average volume, the score receives a significant boost (or penalty if the move is downward). This helps confirm that the price action has conviction behind it.
Oscillator Signal: You can choose between RSI, Stochastic, or Stochastic RSI. Values above 50 add to bullish sentiment, while values below 50 contribute to bearish sentiment.

The final score is clamped between 0 and 100, where values above 70 indicate "Overbought" conditions (strong bullish sentiment), values below 30 suggest "Oversold" conditions (strong bearish sentiment), and the middle range represents neutral territory.

Visual Features

The main line is color-coded dynamically: it shifts from red (bearish) through gray (neutral) to green (bullish) based on the current score. Two horizontal reference lines mark the overbought (70) and oversold (30) thresholds. An info panel in the top-right corner displays the current score, the market regime (Oversold/Bearish/Neutral/Bullish/Overbought), the change from the previous bar, and a breakdown showing how much each component (price, volume, oscillator) contributed to the total score.

Usage

Traders can use this indicator to identify sentiment extremes (potential reversal zones when overbought or oversold) or to confirm trend strength (persistently high scores in uptrends, low scores in downtrends). The breakdown panel helps you understand why the sentiment is bullish or bearish at any moment, making it easier to validate your trading decisions with multiple confirming factors.

describe_indicator('Market Sentiment Indicator', 'lower');

// ============================================================
// INPUTS (identical to the original, nothing added)
// ============================================================
const volumePeriod    = input.number('Volume SMA Period', 20, { min: 1 });
const oscillatorType  = input.select('Oscillator Type', 'RSI', ['RSI', 'Stochastic', 'Stochastic RSI']);
const oscillatorPeriod = input.number('Oscillator Period', 14, { min: 1 });
const bullishColor    = input.color('Bullish Color', '#4ade80');
const bearishColor    = input.color('Bearish Color', '#f0616d');
const neutralColor    = input.color('Neutral Color', '#7d8799');

// ============================================================
// COLOR HELPERS (display only, no effect on the score)
// ============================================================
function clamp255(n) { return Math.max(0, Math.min(255, Math.round(n))); }

function hex2(n) {
    const s = clamp255(n).toString(16);
    return s.length < 2 ? '0' + s : s;
}

function toRgb(hexStr, fallback) {
    if (typeof hexStr !== 'string') return fallback;
    let h = hexStr.trim();
    if (h.charAt(0) !== '#') return fallback;
    h = h.substring(1);
    if (h.length === 3) {
        h = h.charAt(0) + h.charAt(0) + h.charAt(1) + h.charAt(1) + h.charAt(2) + h.charAt(2);
    }
    if (h.length !== 6) return fallback;
    const r = parseInt(h.substring(0, 2), 16);
    const g = parseInt(h.substring(2, 4), 16);
    const b = parseInt(h.substring(4, 6), 16);
    if (isNaN(r) || isNaN(g) || isNaN(b)) return fallback;
    return [r, g, b];
}

function rgbToHex(c) { return '#' + hex2(c[0]) + hex2(c[1]) + hex2(c[2]); }

function mixRgb(c1, c2, t) {
    const u = Math.max(0, Math.min(1, t));
    return [c1[0] + (c2[0] - c1[0]) * u, c1[1] + (c2[1] - c1[1]) * u, c1[2] + (c2[2] - c1[2]) * u];
}

const BULL_RGB = toRgb(bullishColor, [74, 222, 128]);
const BEAR_RGB = toRgb(bearishColor, [240, 97, 109]);
const NEUT_RGB = toRgb(neutralColor, [125, 135, 153]);

const BULL_HEX = rgbToHex(BULL_RGB);
const BEAR_HEX = rgbToHex(BEAR_RGB);
const NEUT_HEX = rgbToHex(NEUT_RGB);

function scoreToColor(v) {
    const s = Math.max(0, Math.min(100, v));
    if (s >= 50) return rgbToHex(mixRgb(NEUT_RGB, BULL_RGB, (s - 50) / 50));
    return rgbToHex(mixRgb(NEUT_RGB, BEAR_RGB, (50 - s) / 50));
}

// ============================================================
// ORIGINAL MATH, UNCHANGED
// ============================================================
const volumeSMA = sma(volume, volumePeriod);

const oscillator = (() => {
    switch (oscillatorType) {
        case 'RSI':            return rsi(close, oscillatorPeriod);
        case 'Stochastic':     return stochastic(close, high, low, oscillatorPeriod);
        case 'Stochastic RSI': return stochastic_rsi(close, oscillatorPeriod, 3, 3);
        default: throw 'Invalid oscillator type';
    }
})();

const priceChange = for_every(close, (c, _prev, i) =>
    i === 0 ? 0 : (c - close[i - 1]) / close[i - 1] * 100
);

const sentimentScore = for_every(close, oscillator, volume, volumeSMA, priceChange,
    (c, osc, vol, avgVol, pChange, _prev, i) => {
        if (i === 0) return 50;

        let score = 50;

        score += pChange * 2;

        const volumeRatio = vol / avgVol;
        if (pChange > 0 && volumeRatio > 1) {
            score += 15 * (volumeRatio - 1);
        } else if (pChange < 0 && volumeRatio > 1) {
            score -= 15 * (volumeRatio - 1);
        }

        if (osc > 50) {
            score += (osc - 50) * 0.6;
        } else {
            score -= (50 - osc) * 0.6;
        }

        return Math.max(0, Math.min(100, score));
    }
);

// ============================================================
// PAINTING
// ============================================================
const gradColor = for_every(sentimentScore, (s) => (isFinite(s) ? scoreToColor(s) : null));

paint(sentimentScore, { name: 'Market Sentiment', color: gradColor, thickness: 2, style: 'line' });

paint(series_of(70), { name: 'Overbought', color: BULL_HEX, thickness: 1, style: 'dotted' });
paint(series_of(30), { name: 'Oversold', color: BEAR_HEX, thickness: 1, style: 'dotted' });

// ============================================================
// INFO PANEL (display only)
// ============================================================
const BG = 'rgba(13, 17, 26, 0.94)';
const DIVIDER = '1px solid #1c2231';
const idx = close.length - 1;

function safeVal(arr, i) {
    const v = arr && arr[i];
    return isFinite(v) ? v : 0;
}

const nowScore = safeVal(sentimentScore, idx);
const prevScore = safeVal(sentimentScore, idx - 1);
const delta = nowScore - prevScore;

const pNow = safeVal(priceChange, idx);
const vNow = safeVal(volume, idx);
const vAvgNow = safeVal(volumeSMA, idx);
const oNow = safeVal(oscillator, idx);

const pPts = pNow * 2;
const vRatio = vAvgNow > 0 ? vNow / vAvgNow : 1;
let vPts = 0;
if (pNow > 0 && vRatio > 1) { vPts = 15 * (vRatio - 1); }
else if (pNow < 0 && vRatio > 1) { vPts = -15 * (vRatio - 1); }
const oPts = (oNow - 50) * 0.6;

let regime = 'Neutral';
let regimeColor = NEUT_HEX;
if (nowScore > 70)      { regime = 'Overbought'; regimeColor = BULL_HEX; }
else if (nowScore > 55) { regime = 'Bullish';    regimeColor = BULL_HEX; }
else if (nowScore >= 45){ regime = 'Neutral';    regimeColor = NEUT_HEX; }
else if (nowScore >= 30){ regime = 'Bearish';    regimeColor = BEAR_HEX; }
else                    { regime = 'Oversold';   regimeColor = BEAR_HEX; }

function ptsColor(v) {
    if (v > 0.5) return BULL_HEX;
    if (v < -0.5) return BEAR_HEX;
    return NEUT_HEX;
}

function ptsRow(label, v) {
    return { cells: [
        { text: label, background: BG, color: '#6b7488', fontSize: '10px', padding: '2px 8px', borderTop: DIVIDER },
        { text: (v >= 0 ? '+' : '') + v.toFixed(1), background: BG, color: ptsColor(v), fontSize: '10px', fontWeight: '700', textAlign: 'right', padding: '2px 8px', borderTop: DIVIDER }
    ]};
}

const rows = [];

rows.push({ cells: [{
    text: 'MARKET SENTIMENT', colspan: 2, background: BG, color: '#8a93a6',
    fontSize: '9px', fontWeight: '700', letterSpacing: '1px',
    padding: '4px 8px 3px 8px', borderBottom: DIVIDER
}]});

rows.push({ cells: [
    { text: nowScore.toFixed(1), background: BG, color: scoreToColor(nowScore), fontSize: '22px', fontWeight: '700', padding: '4px 8px 0 8px' },
    { text: regime, background: BG, color: regimeColor, fontSize: '11px', fontWeight: '700', textAlign: 'right', padding: '8px 8px 0 8px' }
]});

rows.push({ cells: [{
    text: (delta >= 0 ? 'u25B2 +' : 'u25BC ') + delta.toFixed(1) + ' vs prior bar',
    colspan: 2, background: BG, color: delta >= 0 ? BULL_HEX : BEAR_HEX,
    fontSize: '9px', padding: '0 8px 5px 8px'
}]});

rows.push(ptsRow('Price Action', pPts));
rows.push(ptsRow('Volume', vPts));
rows.push(ptsRow('Oscillator', oPts));

rows.push({ cells: [
    { text: 'Rel Volume', background: BG, color: '#6b7488', fontSize: '10px', padding: '2px 8px 4px 8px', borderTop: DIVIDER },
    { text: vRatio.toFixed(2) + 'x', background: BG, color: '#c8cedb', fontSize: '10px', fontWeight: '700', textAlign: 'right', padding: '2px 8px 4px 8px', borderTop: DIVIDER }
]});

paint_overlay('Sentiment Panel', { position: 'top_right', offset_x: -10, offset_y: 8 }, {
    background_color: BG,
    order: 'above_all',
    width: 190,
    rows: rows
});

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General Idea

How It Works

Visual Features

Usage

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