Market Sentiment Oscillator

Market Sentiment Oscillator

Overview

The Market Sentiment Oscillator is a Pine Script v6 indicator for TradingView that assesses market context with a composite oscillator. It blends MACD, RSI, and Volume Price Trend (VPT) into a normalized score, with optional multi-timeframe (MTF) averaging and optional trail lines to visualize recent extremes. Weighting and normalization are used to keep the scale consistent across symbols and timeframes. A compact status table summarizes sentiment, trend, and turning-point markers.

How It Works

• Composite score: finalScore = 0.4 · MACD_hist + 0.4 · ((RSI − 50)/50) + 0.2 · VPT_norm. MACD/RSI emphasize momentum; VPT_norm (z-score of a cumulative VPT) adds volume context.
• MTF (optional): The same score is computed on a higher timeframe (default: 1H) and averaged with the chart-TF score for broader context. MTF requests use lookahead_off.
• Neutral buffer: Readings within ±0.2 (default) are treated as neutral to reduce noise.
• Markers: Early turning points are labeled Hypothetical; labels switch to Verified after a fixed bar count.
• Trails (visual only): Lines connect recent extreme highs/lows of the oscillator, with optional dashed previews and short forward extensions for illustration.

Key Features

• Composite Sentiment Score: Structured blend of MACD, RSI, and normalized VPT.
• Multi-Timeframe Context: Optional averaging with a higher timeframe score.
• Visual Trails: Extreme-to-extreme lines and optional previews for context (charting aid).
• Adaptive Coloring: Gradient or solid coloring based on direction and magnitude.
• Turning-Point Markers: Hypothetical and Verified labels for tops/bottoms.
• Status Table: Summarizes sentiment state, trend, and recent turning-point info.
• Customizable: MACD/RSI/VPT inputs, neutral zone, colors, visibility.

What It Displays

A composite, normalized view of momentum and volume context, with optional higher-timeframe blending and visual trails to help interpret shifts between bearish, neutral, and bullish conditions.

Originality

Original Pine v6 implementation using TradingView built-ins: ta.macd, ta.rsi, ta.cum, ta.sma, ta.stdev, ta.pivothigh, ta.pivotlow, and request.security.

Common Uses

• Reviewing momentum context alongside volume influence.
• Illustrating shifts between bearish/neutral/bullish conditions.
• Adding higher-timeframe context to a lower-timeframe view.

Configuration Notes

Set MACD (default 12/26/9), RSI (default 14), and VPT options. Choose a higher timeframe (default 1H) if using MTF. Adjust the neutral zone (default ±0.2), coloring mode, and visibility of trails and table.

Repainting & Limitations

• MTF: Uses lookahead_off to avoid higher-timeframe repainting.
• Pivots/labels: Turning-point pivots are verified only after the required right bars close; “Hypothetical” labels are early and may update intra-bar.
• Trails/previews: Visual aids only; previews and short forward extensions can update while a bar is forming.

Legal Disclaimer

This indicator is for informational and educational purposes only—not investment, financial, or trading advice. Past performance does not guarantee future results; trading involves risk of loss. Provided “as is” without warranties. Consult a qualified professional before making decisions.