FXSSI.Sentiment.Lite MT4 Indicator: Market Sentiment of Players in Your Terminal
It is important to analyze the current market sentiment before opening a trade. For example, estimate how many traders now prefer to hold long positions and how many are short.
With such statistics, you can refuse a knowingly losing trade or, on the contrary, confirm your intentions by opening a new trade.
The FXSSI_Sentiment_Lite indicator displays information about the market sentiment directly on the MT4 terminal chart.
By installing the indicator, you will see a histogram with the percentage of bulls and bears in the market. This ratio is often referred to as the speculative sentiment index.
Aggregated client positions from a number of large brokers act as a data source. For example, sentiment index data published on the DailyFX website provided by IG Group broker. The developers of the indicator carefully check all the data received, so you can be sure of the reliability and relevance of the information supplied. The market sentiment indicator is updated once an hour by default; however, if necessary, you can reduce this interval to 5 minutes.
The indicator settings have the following parameters available for editing:
Current Symbol - the currency pair is determined automatically.
Defined Symbol - specify the required currency pair in the Defined Symbol field.
Signal Ratio (1-49). Determines the boundaries for the indicator of the ratio of traders' positions, going beyond which the signal is formed. If 40 is specified, then a buy signal will be triggered at a value of 40 or less, and at 60 or higher, a sell signal will be triggered.
Server Time Offset. Time zone selection. It is automatically detected by default. This parameter only affects the label showing the time of the last update, but does not affect the frequency of updates itself.
Color Scheme. Two-color schemes are available: white and dark background. It is automatically detected by default.
Indicator Position & Offset. Using these settings, you can change the angle of the indicator on the chart, as well as set indents from this angle.
Update Interval - the frequency with which the indicator will request data from the server. It varies from 5 to 60 minutes.
Information about the percentage of current traders' deals is a very useful indicator for a trader. You can estimate the likelihood of a trend developing using these numbers. Always try to go against the majority - buy when more than 60% of traders are selling or, conversely, sell when the majority is buying. This is the most common logic for analyzing market sentiment.