Liquidity Sentiment

2024年12月11日

This indicator provides insights into trader's buying and selling sentiment. It is not directly related to traditional momentum indicators, thereby adding value in decision-making. This may allow traders to better predict price movement for more strategic entry and exit points.


What does the Indicator show?

A drop of Liquidity Sentiment suggests more traders are willing to pay the Ask, as they are keen to buy. (In this situation, the indicator moves towards the Ask label).

A rising Liquidity Sentiment suggests more traders are eager to sell, and willing to accept the Bid. (In this situation, the indicator moves towards the Bid label).


Logic:

Why does a stock go up?
Because more traders want to buy than sell, creating illiquidity.
Why does a stock go down?
Because more traders want to sell than buy, creating liquidity.


How to use the Indicators settings?

Setting your chart to 5-minute time periods is best for observing intraday price movements.
Setting your chart to 4-hour time periods provides the best longer term view.

Setting the "Indicator - # of SMA Intervals" to a higher number extends the reading frame of the indicator, this depicts sentiment over the specified time period. For example, if the chart is set to 1 day, and the "Indicator - # of SMA Intervals" is set to 5, the indicator shows the Liquidity Sentiment through a simple moving average of 5 days.


What is a Simple Moving Average?

In stock trading, a Simple Moving Average (SMA) is a calculation that takes the arithmetic mean of a given set of data values over a specified number of time periods, to smooth out data and identify trends.

1月27日

リリースノート

Shading background by New York day/night time. Making rhythmic daily and nightly patterns much more obvious.

2月12日

リリースノート

Taking labels off axis to make it more useable on mobile

2月13日

リリースノート

fixing normalisation error on my part

9月29日

リリースノート

Removing bid and ask lines, moving to make "buy" and "sell" liquidity more the main focus