Sentiment Cycle Indicator Performance
2025-01-07
Category: None

Here is the performance overview of my custom Sentiment Cycle Indicator. This indicator is a combination of several elements, carefully designed to detect and track market sentiment effectively.
	•	When the background is green, it indicates the market is bullish.
	•	When the background is red, it signals bearish market conditions.
	•	If there is no background, it means the market is sideways, often due to low volume. It 
                 won't generate any signal.
This helps you avoid taking unnecessary trades and prevents overtrading.

Let’s take a look at the current scenario:
On the most recent chart, the first signal appeared at 15:30, showing a clear rejection from the 11,719 level. Before that, the market was sideways, as indicated by the absence of background coloring. This makes it easy to identify where the market is heading without relying on multiple tools.

For example:
	•	During a red zone, you can confidently take a short trade when the first sell signal appears and hold it. A second sell signal may also be a valid entry point, but it’s better to avoid taking trades on the third signal to reduce risk.
	•	Similarly, during a green zone, the indicator beautifully captures bullish momentum. In one instance, it successfully tracked a rally of 3,500 points, showcasing its power in identifying strong trends.

This indicator not only helps you capture market sentiment but also clearly signals when there is no actionable sentiment, allowing you to stay out of choppy or low-volume conditions.

This is the real strength of my Sentiment Cycle Indicator—it simplifies decision-making and enhances your trading precision by focusing on actionable trends and avoiding unnecessary trades.