Quantitative Sentiment Model

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Quantitative Sentiment Model - Publication Description📊 Advanced Market Sentiment Indicator

Transform market emotions into actionable data with this sophisticated sentiment analysis tool.

🎯 What It Does

The Quantitative Sentiment Model combines three critical market dimensions to produce a precise sentiment score (0-100), eliminating guesswork from market psychology analysis.

Three-Component Architecture:

Momentum Analysis (40%) - Fast vs Slow EMA comparison for trend strength
Volatility Assessment (35%) - ATR-based fear/stability measurement
Volume Conviction (25%) - Z-score analysis of trading participation

📈 Key Features

✅ Objective Sentiment Scoring - No subjective interpretation needed ✅ Multi-Timeframe Compatible - Works on any timeframe from 1m to 1W ✅ Customizable Weights - Adjust component importance for different markets ✅ Built-in Thresholds - Clear Fear (30) and Greed (70) levels ✅ Smooth Operation - EMA smoothing reduces noise while preserving signals

🔧 Configurable Parameters

Momentum Periods: Fast EMA (default: 12) vs Slow EMA (default: 200)
Volatility Length: ATR calculation period (default: 14)
Volume Analysis: Z-score lookback period (default: 20)
Component Weights: Fine-tune the influence of each factor
Smoothing: Final EMA smoothing period (default: 5)

📊 How to Read

0-30 (Fear Zone): Extreme negative sentiment

High volatility indicates market stress
Weak or negative momentum
Often coincides with capitulation events

30-70 (Neutral Zone): Balanced market conditions

Normal trading environment
Moderate volatility and momentum

70-100 (Greed Zone): Extreme positive sentiment

Low volatility shows market confidence
Strong upward momentum
High volume on rallies

💡 Trading Applications

Contrarian Signals: Extreme readings often precede reversals
Trend Confirmation: Sentiment alignment with price direction
Risk Management: Adjust position sizes based on sentiment extremes
Market Timing: Enter/exit based on fear/greed thresholds

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