My Sentiment indicator gave a wrong signal? (PAID Indicator)
2024-11-21

market was sideways and i think it sensed it correctly.. but it add the charm when you add 9EMA or 20 EMA...

question : did it give a wrong signal?

Let’s break it down. The exit happened when the price moved out of the green background zone, transitioning into the neutral charting color, typically indicating a lack of momentum. However, we then saw a big green candle, which brought some momentum back. The indicator, thinking the trend could continue, generated a buy signal. But in the very next candle, the price started falling.

so basically when there is no red/green background it means sideways, where momentum, volume is lacking in the trend.

This is the first time I’ve noticed such behavior—a buy signal followed immediately by a downturn. Interestingly, this happened right at the top, where the market essentially trapped traders.

What do you think went wrong? This is why I sometimes incorporate the 9 EMA for exit or 20 EMA for additional confirmation like if price can be bullish again or change momentum. For example, if the market is above the 20 EMA, it generally signals bullishness. 

However, I use the 9 EMA in my indicator as an exit signal to maximize profits and ensure timely exits.