So I’m working on building out a product that is similar to the fear and greed index. As I continue building it out, I’ll share the data with the paid subscribers first as I iron out the kinks.
Essentially it is data from small trader positions. The thesis is that most of the time, retail is wrong. This is an index from 0-100 that plots how bullish or bearish small traders are. Peaks of extreme small trader bullishness typically align with market tops. Valleys of extreme small trader bearishness typically align with market bottoms. I’m still working on what the threshold should be of that extreme but the data is pretty striking so far.
Here we have the chart I’ve built out in excel. The yellow arrows are when small traders are over the 90 mark on the sentiment index. This would represent a time of peaking in the market
Note below the arrows below align with peaks darn near exactly. I still have a lot of backtesting to do but I’m pretty excited about this product when combined with other technical analyses.
See you paid subscribers later in the Micro Monday post when we take a look at some intraday price action on BTC and ETH.
Teaser: New Product
Teaser: New Product
Teaser: New Product
So I’m working on building out a product that is similar to the fear and greed index. As I continue building it out, I’ll share the data with the paid subscribers first as I iron out the kinks.
Essentially it is data from small trader positions. The thesis is that most of the time, retail is wrong. This is an index from 0-100 that plots how bullish or bearish small traders are. Peaks of extreme small trader bullishness typically align with market tops. Valleys of extreme small trader bearishness typically align with market bottoms. I’m still working on what the threshold should be of that extreme but the data is pretty striking so far.
Here we have the chart I’ve built out in excel. The yellow arrows are when small traders are over the 90 mark on the sentiment index. This would represent a time of peaking in the market
Note below the arrows below align with peaks darn near exactly. I still have a lot of backtesting to do but I’m pretty excited about this product when combined with other technical analyses.
See you paid subscribers later in the Micro Monday post when we take a look at some intraday price action on BTC and ETH.
@theprivacysmurf