The Sentiment Ratio indicator gauges current Market Sentiment between -100% and 100%, where lower than -40% is considered Bearish and higher than 40% is Bullish. The channel between the two is considered Neutral.
The indicator has been a very useful filter tool for signals within a trading system.
Example call function:
int SentimentIndicator(double triggerLevel)//Return sentiment if trigger level is activated
double sentimentRatio=iCustom(NULL,0,"Sentiment Ratio",0,0,0);
else if(sentimentRatio<=-triggerLevel) return(OP_SELL);
return(-1);//Default: No indication
Basis of calculation:
The calculation in the indicator applies weighted averages from RSI, Stochastic Oscillator, and William’s Percent Range.