Discussing the article: "Automating The Market Sentiment Indicator"

[MetaQuotes]

Check out the new article: Automating The Market Sentiment Indicator.

In this article, we automate a custom market sentiment indicator that classifies market conditions into bullish, bearish, risk-on, risk-off, and neutral. The Expert Advisor delivers real-time insights into prevailing sentiment while streamlining the analysis process for current market trends or direction.

In the previous article, we developed a custom market sentiment indicator, which combines signals from multiple timeframes into a single, easy-to-read panel. We analyzed higher timeframe trends alongside lower timeframe structures—examining price action, swing highs/lows, moving averages, and volatility—to classify the market into five clear sentiments: bullish, bearish, risk-on, risk-off, or neutral.

Automating the custom indicator brings several key advantages in trading. It ensures continuous, objective monitoring of sentiment without emotional bias, enabling faster execution to market changes. We can maintain consistency in analysis across timeframes, catch early opportunities via systematic detection of breakout or trend-confirmation signals, and allocate risk more effectively. Ultimately, automation turns what would be a labor-intensive, error-prone process into an efficient EA that supports data-driven decision-making.

Bullish/Risk-On Sentiment:

Bullish sentiment reflects strong upward momentum, where higher timeframe trends and price structures confirm that buyers are in control, while risk-on sentiment indicates increased investor confidence and appetite for risk, often pushing prices higher. In both cases, the market environment supports upward movement, and our strategy is to execute a buy trade whenever the indicator signals either bullish or risk-on sentiment, since the price is more likely to continue rising.

Author: Hlomohang John Borotho