
This Bar Sentiments Chart Indicator is a technical analysis tool that measures the strength and direction of market sentiment on a bar-by-bar (or candlestick-by-candlestick) basis. It examines the relationship between each bar’s open, high, low, and close prices to determine whether the market exhibited bullish, bearish, or neutral behavior during that time period.
Typically, a bullish sentiment is identified when the close price finishes significantly higher than the open, indicating strong buying pressure. A bearish sentiment is detected when the close is notably lower than the open, signaling strong selling pressure. Neutral bars, often called "dojis," reflect indecision or balance between buyers and sellers.
Advanced versions of the Bar Sentiments Indicator may incorporate additional elements such as volume, relative body size, or momentum to refine the sentiment classification. Sentiments are often visualized through color-coding—green for bullish, red for bearish, and gray or blue for neutral—making it easy to quickly assess the prevailing market tone.
If 1s and 0s are the building blocks of software engineering, then the output of the Bar Sentiments Chart Indicator represents the fundamental building blocks of advanced machine learning trading systems. By quantifying raw market sentiment, it provides essential inputs for algorithms that seek to learn and predict future price movements based on historical behavior.
Using the Bar Sentiments Chart Indicator, traders gain a deeper understanding of micro market dynamics, helping them identify trend strength, potential reversals, and consolidation periods—especially when combined with multi-timeframe analysis and other technical tools.