QVGS SentimentMood

Construction

The QVGS SentimentMood Indicator comprises 2 components that are made up of Quantitative and Technical inputs.

The first component is Bias which is computed from the price trend over the past 13 weeks. Bias can be positive (or upward-sloping) or negative (downward-sloping). The second component is Mood which ascribes a score from -3 to 3 to an index or stock at a point in time as follows:

Extreme Greed (3) | Greed (2) | Bullish (1) | Neutral (0) | Bearish (-1) | Fear (-2) | Extreme Fear (-3)

Together Bias and Mood form the QVGS ValueScore indicator which can applied in 2 ways:

1. Passive Sentiment
2. Active Sentiment

Application

The SentimentScore indicator is useful for short-term trading that spans over a few weeks of trading positions.

The indicator can be used for both index trading (passive sentiment) as well as stock trading (active sentiment) and provides clues for both long and short sides of positions.

SentimentScore is viewed in the context of its past 13-week history and is updated weekly.

The detailed construction and interpretation notes of QVGS SentimentMood can be understood through the link below.

Passive Sentiment is computed on broad market indices on the NIFTY 500 for Indian Equities and the S&P 500 for U.S. Equities.

• Negative numbers imply bearish sentiments of Bearish, Fear, and Extreme Fear.
• Positive numbers imply bullish sentiments of Bullish, Greed, and Extreme Greed.
• The sloping trendline provides the Bias.

Active Sentiment is computed on the stocks comprising the NIFTY 500 for Indian Equities and the S&P 500 for U.S. Equities.

• Shades of Red represent bearish camp with the sentiments of Bearish, Fear, and Extreme Fear.
• Shades of Green/ Blue represent the bullish camp with the sentiments of Bullish, Greed, and Extreme Greed.
• The sloping trendline provides the Bias.