Market-Sentiment

QUOTE:
"Market Sentiment indicator" ... appears after the DataExtensions is installed

So one doesn't require the IndexLab extension installed to get Market Sentiment. I didn't realize that. Basically, the Market Sentiment Indicator does "specifically" what IndexLab would do "generally" if you custom configured it to do so. Interesting.

I would like to play with IndexLab eventually, but it's a little advanced for me at this point. I'll try to work the Market Sentiment indicator into my strategy first before messing with IndexLab (which is more advanced).

Now that I read index lab info I understand the market sentiment data set. I did not know that's where those were generated from and it didn't state that in the help description. That's the info I was missing and will play around with index lab and market sentiment more. Thanks!

The market sentiment dataset is not generated using IndexLab.

What is the math/description behind advancing, declining and unchanged in market sentiment? Is that the same as the terminology (advancing, declining and unchanged) listed in index lab for those items? If not the same can you help provide clarity on those? That was what I was asking about that the help did not define.

Apart from that MarketSentiment indicator has a fixed and non-customizable period (I believe 52-week), it's the same industry standard term.

QUOTE:
What is the math/description behind advancing, declining and unchanged in market sentiment?

This sentiment data is published by the stock exchanges and is then cleaned up by WealthData and made available to WL in the World Indices\Market Sentiment dataset.

So the idea is to process this Market Sentiment dataset (originating from the exchanges) with IndexLab using something like the McClellan Oscillator to produce a "Sentiment Index" that you can use in your trading strategy.

But the sentiment data (advancing, declining, etc) is produced by the stock exchanges. It has nothing to do with WL.

But we are just scratching the surface here about Market Sentiment. There are third-party services that take FRED data ("The Fed" economic data available through the WL DataExtensions plug-in) and run it through a real-time FFT and neural network (such as NeuroLab) to produce a "timing" sentiment index. You can find more about this market-turning-point timing service by Googling for it.

Perhaps we should have a Monday webinar discussing the different aspects of market sentiment to clarify all the methods. IndexLab and NeuroLab are just the tip of the iceberg.