Forex market sentiment indicator.

The Forex market moves according to its own laws, and the market sentiment indicator is designed to understand this movement. The tool calculates oversold and overbought zones, allowing you to assess the current trend.

While the script doesn't offer a 100% guarantee, it can nevertheless be described as quite effective.

The Forex Market Sentiment indicator can be used in virtually any trading strategy, as it analyzes both short and long timeframes . This makes the tool suitable for scalping.

It's essentially an analogue of the well-known stochastic indicator; it operates using a similar approach, but according to the script's creators, it's more accurate than the stochastic.

Download the Forex Market Sentiment indicator.

Setup.

After downloading and unzipping the archive, install the indicator using the standard procedure, as detailed in the article " Installing the Forex Indicator ."

Next, you only need to configure a few parameters:

REI_Period – the number of periods analyzed. The default is 8. For long timeframes, this value can be increased, for short ones, decreased. The chart scale can also be adjusted.

Levels – the default is -60 and 60; decreasing the value leads to more signals to open positions, but also significantly increases the number of false signals.

Color and Style – the default level color is gray; I changed it to green, and the signal line color to yellow. However, you can choose your own colors and line thickness.

Using in trading:

The indicator can be used as a primary or secondary tool. Buy signals are triggered when the main line crosses level -60 upwards, while sell signals are triggered when the signal line crosses level 60 downwards.

To eliminate false signals, it is advisable to use another indicator, such as a Moving Average ; this approach will significantly increase trading efficiency.