The Sentiment Ratio indicator gauges current market sentiment between -100% and 100%, where lower than -40% is Bearish and higher than 40% is Bullish. The channel between the two is considered Neutral.
The indicator has been particularly effective on H4 charts when used to confirm the direction of potential trading signals. On shorter term charts, when the indicator crosses -40 or 40 back to Neutral, it can be effective when indicating potential swings; for example, a sell signal when the indicator crosses below 40 and a buy signal when the indicator crosses above -40.
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