Options and features:
- Dual period: look at the short term vs a backdrop of a longer period (expressing the longer-term "prevailing sentiment") - get clearer "re-entry" points in long bull or bear runs
- Longer period has a "Step" option - since what we won't be really interested in the fractions, but more of the broad "strength" of the sentiment (weak, medium..) - default set to a step of 5. please experiment with what works best for you.
- Option to make the volume-weighted. (On by default) - won't say much here, but possibly this is the biggest and most important added feature for those keen on the combined price - effect (and Wyckoff'ians)
- Smoothing option -- i would keep this set to 3 to avoid extra lag due to the smoothing
- scaled to +100 / -100 with zero as the signal line - that's how i like oscillators to work
- Adjustable optional overbought / oversold levels - can also be used to also mark strong up/down levels
- designed for the "visually oriented" -- like me :)
- code is open and commented
What Values to use:
many setting combinations possible. play around and find your sweet spot based on what/how you trade. for me, i usually prefer what i set as defaults in the study.
tip: if you set Length = 14, smoothing = 1, Sent. factor =1, Vol Weighted = No, you're back (almost) with a classic - the only difference would be that i use in my calculation of the (i tend to believe is the most naturally-suited for looking at "market price" data series)
Please feel free to use, share or give feedback.
I thought twice and started to do tests with the sentiment, because it has indicated strong or false entries in my last studies that I did today. thanks
Very much useful for portfolio investors like me.
If I am not disturbing you, can you post the strategy performance inbuilt code?
The strategy will enable me to work out brokerage costs, taxes including income tax and cost of financing.
All along been I was looking for this indicator, My search stops with this indicator.
My only disappointment is, it doesn't work with Indices. Plz, check.
also, i find it showing better diversion with price vs the classic RSI - possibly due to being volume weighted. there are 4 examples of diversion with price in your second chart.
i don;t have a strategy developed for this - sorry - i need to educate myself in that area which i have not yet explored in TV
can you describe where it fails with indices ? did you try to uncheck the "Volume-weighted" option when on an index chart and see if that works.
Thanks for your guidance. It works after unchecking. Best Regards.