Investor Satisfaction/Price Divergence Pro [Ox_kali]The "Investor Satisfaction/Price Divergence" is an indicator designed to quantify and juxtapose the satisfaction of a group of investors with potential price divergences of the asset.
The primary goal of this indicator is to provide a reliable tool for gauging investor sentiment and identifying price divergences. These insights can be instrumental in predicting possible market trend reversals.
Key Features
Calculation of the highest and lowest prices over a user-defined period.
Computation of the average satisfaction of investors who have invested over a user-defined period.
Normalization of average satisfaction between 0 and 1 to provide a standardized measure of investor sentiment.
Identification of price divergence between the normalized satisfaction and the actual asset price.
Detection of anomalies in satisfaction change, which can suggest unusual market conditions.
Plotting histogram display of the difference between normalized satisfaction and price divergence.
Functionality Analysis:
This indicator begins by identifying the highest and lowest prices over a period defined by the user. It then calculates the average investor satisfaction based on the change in the closing price from the investment point to the current price, relative to the range between the highest and lowest prices.
This satisfaction measure is then normalized between 0 and 1, providing a uniform measure of investor sentiment. The indicator also identifies potential price divergence by comparing the normalized satisfaction with the normalized price. This divergence is then plotted as a histogram, with the color of the histogram bars indicating whether the market is oversold, overbought, or in a normal state. Anomalies in satisfaction change are highlighted in yellow, helping traders to spot unusual market behavior.
Trading Application
The "Investor Satisfaction & Price Divergence" indicator can be incorporated into a variety of trading strategies. A significant divergence between normalized satisfaction and the asset price can signal a potential market reversal. Additionally, a sudden drop or rise in investor satisfaction could indicate a sell-off or a buying spree, respectively. Additionally, the capability to spot irregularities in satisfaction change may be useful in recognizing unusual market conditions, possibly providing early indications of noteworthy market events
Please note that the investor Satisfaction/Price Divergence by Ox_kali is provided for educational purposes only and is not meant to constitute financial advice. This indicator is not a guarantee of future market performance and should be used in conjunction with proper risk management. Always ensure that you have a thorough understanding of the indicator’s methodology and its limitations before making any investment decisions. Additionally, past performance is not indicative of future results.
Emotions
Stock Market Emotion Index (SMEI)Implementation of Charlie Q. Yang's research paper “The stock market emotion index”, subtitle “A New Sentiment Measure Using Enhanced OBV and Money Flow Indicators”, (2007) where he combined “five simple emotion statistics” - Close Emotion Statistic (CES), Money Flow Statistic (MFS), Supply Demand Statistic (SDS), Relative Strength Statistic (RSS), and Psychological Level Statistic (PLS) - into one indicator.
Quotations:
“The index calculation is solely based on observed short term market volatility as reflected by each day’s trading volume, open, high, low, and close prices”
“The basic premise of Dow theory is that the market discounts everything, including the emotions of all traders. The fundamentals of a company do not change suddenly when its daily stock price is fluctuating as driven by human emotions that are often irrational. However, over a longer time period, a company's fundamentals do change. Again, different types of human emotions, triggered by the flow of material events, are moving the stock price trend up or down. This paper summarizes the author’s attempt in understanding primary trend extent and duration by proposing a new sentiment measure using statistical analysis of stock market human emotion.”
Even though “indicator is intended for identifying primary trend cycles that typically last one year or longer“ where Mr. Yang used a fixed averaging length of 260 days and only days as time frame, my implementation has been changed slightly to accommodate for all time frames and to adapt faster using shorter averaging (timeframe dependent).
How to use it:
Positive values indicating a bullish trend and negative values indicating a bearish trend. Background color is set to green or red accordingly.
Positive and negative bar to bar changes are indicated with green and red to show bar to bar (ultra short term) trends.
(No financial advise, use for testing purposed only)
No Emotions indicator- Execute your trading plan EMOTIONLESSEmotions are one of the most important variable in trading
With this indicator you can execute your trade without any feelings ruining your plan
The idea is simple: you can monitor your trades by just looking at a row of colored squares, no need to watch the charts once entered a trade
Green square= you are in profit
Red square = you are in a loss
Yellow cross on green square = take profit hit
Purple cross on red square = stoploss hit
Just input the symbol, entry price (entrata), take profit and stoploss
From there, just watch the squares and no charts
Each row of squares is an entry, you can input up to 3 entries in this version
No Emotions= perfect trading execution
The code is protected but anyone can use it
if you enjoy this free indi, check out my main creation called "Stochastics Real Deal Indicator"
