Forex market sentiment indicator.

The price on the Forex market moves according to its own laws; the market sentiment indicator is designed to understand this movement.

The tool calculates oversold and overbought zones, allowing you to evaluate the existing trend. It is clear that the script does not provide a one hundred percent guarantee, but despite this, its work can be described as quite effective.

The Forex market sentiment indicator can be used in almost any trading strategy, as it analyzes short and long time frames .

Thanks to this, the tool can also be used for scalping. In fact, this is an analogue of the fairly well-known stochastic indicator, the work is carried out according to a similar scheme, but according to the authors of the script, it is more accurate than the same stochastic.

Download the Forex market sentiment indicator.

Setup.

After downloading and unpacking the archive, install the indicator according to the standard scheme, described in detail in the article “ Installing a Forex indicator ”.

Next you need to configure just a few parameters:

REI_Period – the number of periods to be analyzed, the default is 8, for long timeframes you can increase the value, for short ones you can decrease it.

You can also make adjustments using the scale of the graph. Levels – set to -60 by default and 60; decreasing the value leads to an increase in signals for opening positions, at the same time the number of false signals increases significantly.

Color and style – the default level color is gray, I changed it to green, and the signal line color to yellow.

But you can choose your own colors and line thickness. Use in trading.

The indicator can be used as a main or additional tool, buy signals - the main line crosses the level of 60 in the upper direction, sell signals - the signal line crosses the 60 level in the lower direction.

To eliminate false signals, it is advisable to use another indicator, for example, Moving Average , this approach will significantly increase trading efficiency.