Sentiment Proxy (Enhanced Version)

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"Sentiment Proxy" indicator is designed to enhance your trading decisions by combining the power of an Adaptive EMA with a momentum-based Sentiment Proxy. This dual-layer approach ensures you are well-informed about market conditions and can act decisively.

Key Features:

Adaptive EMA (RSI-based):

Dynamically adjusts to market conditions using RSI-based smoothing.
Helps identify short-term trends and turning points.

Sentiment Proxy (Momentum Analysis):

Calculates momentum and its moving average to evaluate market sentiment.

Divides the market into three zones:

Bullish Zone: Positive momentum (green background).
Bearish Zone: Negative momentum (red background).
Neutral Zone: No clear sentiment (yellow background).

Filtered Buy & Sell Signals:

Buy signals occur when the Adaptive EMA crosses above the comparison EMA during bullish momentum.

Sell signals occur when the Adaptive EMA crosses below the comparison EMA during bearish momentum.

How to Use:

Add the Indicator to Your Chart:

Apply the indicator to any timeframe and asset class.

Interpret the Zones:

Look at the background color for a quick sentiment overview:

Green: Market is bullish.
Red: Market is bearish.
Yellow: Market is neutral.

Monitor the Buy & Sell Signals:

Buy signals appear as green "B" labels below candles.
Sell signals appear as red "S" labels above candles.

Adjust Parameters:

Modify RSI Length, Smoothing Factor, Momentum Length, or Momentum SMA Length to fit your strategy.

Example Strategy:

Bullish Setup:
Wait for a buy signal with a green background.
Confirm the trend by ensuring the price is above the comparison EMA.

Bearish Setup:
Look for a sell signal with a red background.
Ensure the price is below the comparison EMA for confirmation.