Market Sentiment [NeuraAlgo]

Market Sentiment [NeuraAlgo]

This indicator provides a real-time view of market momentum and sentiment by analyzing bullish and bearish impulses using price and volatility-based calculations. It visualizes trends on the chart and offers a dashboard with key statistics.

1.Status Calculation
The Status measures bullish momentum by identifying strong upward impulses.

Equation:

Status Source = Average of lows where(Low - High[2]) > ATR

For each bar, it checks if the current low minus the high from two bars ago exceeds the Average True Range (ATR).
All lows that satisfy this condition are collected.
The average of these lows forms the Status Source, representing the level of strong buying pressure.

This helps traders visualize where significant bullish activity is concentrated and gauge upward momentum.

2.Status Source Calculation
Similarly, bearish impulses are detected by checking if highs fall below lows from two bars ago beyond ATR thresholds. The corresponding levels form the reference for selling pressure.

3. Trend Strength and States
Strength is Quantifies how far the price is from bullish or bearish reference levels as a percentage.

Trend States

• Stability Phase (Gray): Market is quiet, minimal momentum.
  
• Positive Flow (Green): Bullish pressure dominates; buyers are in control.
  
• Negative Flow (Red): Bearish pressure dominates; sellers lead.
  
• State Transition: Market is shifting; momentum is building.
  

4. Visuals

Bar colors indicate trend state: green for bullish, red for bearish, gray for neutral.
Filled zones highlight bullish and bearish reference levels for intuitive trend analysis.

5. Dashboard
An optional dashboard displays:

• Sentiment:Visual gradient representing bullish or bearish dominance.
  
• Status:Current trend state in concise, human-readable terms.
  

6. Purpose:
This indicator is designed to identify the current market status and the behavior of the asset by analyzing bullish and bearish impulses. It helps traders understand whether the market shows signs of stability, growth, or decline based on the asset’s price action and volatility.

Understand the asset behavior

Healthy asset behavior

Weak asset behavior

Market Sentiment [NeuraAlgo] combines price action, ATR-based volatility, and impulse tracking to provide a clear and actionable view of market conditions. The BullLine equation ensures that only meaningful bullish moves are highlighted, giving traders a reliable reference for momentum and potential entry points.