Market Emotion Cycle Detector

This indicator estimates emotional phases in price behavior by measuring how far price deviates from its dynamic mean.
It uses an adaptive Z-Score normalization with volatility-aware scaling and optional higher-timeframe blending.

Each candle is color-coded according to its deviation level, creating a clear visual map of market sentiment, from extreme panic (MAX FEAR) to euphoric exhaustion (MAX EUPHORIA).
The tool helps identify accumulation and distribution phases inside cyclical or mean-reverting markets.

🧩 Core Logic

Z-Score of EMA-smoothed price: measures standardized distance from the mean.

ATR regime scaling: adjusts sensitivity across volatility environments.

Optional higher-TF fusion: smooths sentiment transitions without lookahead.

Phase classification: seven discrete emotion zones (MAX FEAR → MAX EUPHORIA).

Non-repainting signals: phase changes confirmed on bar close only.

⚙️ Setup Instructions

To allow full color rendering by the Emotion Candles:

Open Chart Settings → Symbol → Candles
 • Uncheck “Color bars based on previous close”
 • Clear all Body, Wick, and Border colors

On the chart, right-click any overlay element (coin label, MTX, indicator tag …)
 • Choose Hide from the ⋮ menu to keep the view clean

Ensure background contrast makes emotion colors visible.

🎯 Usage Notes

Designed for contextual sentiment analysis, not automated entries.

Works best when combined with independent trend or structure confirmation.

Webhook-ready alerts are available for LONG / SHORT / FLAT transitions.

Default parameters are calibrated for daily and 4-hour charts; shorter TFs may require reduced lookback.

📘 Classification Reference

MAX FEAR:
Capitulation & panic; potential deep-value accumulation zones

FEAR:
Negative bias but stabilizing volatility

CONCERN:
Early recovery interest; risk-reward starts improving

NEUTRAL:
Balanced sentiment, transition zone

MILD GREED:
Optimism emerges, trend continuation possible

GREED:
Late-stage rally; profit-taking often begins

MAX EUPHORIA:
Emotional climax, exhaustion and distribution signals

This publication is an original implementation of an adaptive sentiment model - not a mash-up or derivative of existing indicators.

Created by geokat