The Market Sentiment indicator for MT4 tracks sentiment for any currency pair and provides trading signals based on the available market data.
The indicator appears in the lower left corner of the screen (can be changed) and provides the buy, sell or neutral trading signal.
It displays the bulls ratio versus the bears ratio and based on that info, it issues a buy, sell or neutral recommendation.
In addition, the indicator also displays the current date and time.
How to interpret the indicator?
- Buy when the market sentiment indicator displays “Long”.
- Sell when the market sentiment indicator displays “Short”
- Stand aside when the market sentiment indicator displays “Neutral.”
Key Points
- Tracks market sentiment
- Delivers trading signals
- Easy to use
- Well worth adding to your indicator collection
By default, the indicator updates the market sentiment every hour, but the time interval can be changed by editing the input value.
Additionally, you can also update market sentiment manually as follows:
Free Download
Download the “Market Sentiment Signal Indicator.ex4” MT4 indicator
Indicator Example Chart
The EUR/USD 1-hour chart below shows the Market Sentiment Forex indicator in action.
Basic Trading Signals From This Tool
Signals from the Market Sentiment indicator for Metatrader 4 are easy to interpret and go as follows:
BUY:
- A buy signal is given when the Market Sentiment indicator displays “Long”.
- Place a stop loss 3 pips below the most recent swing low point.
- Utilize your favorite take-profit method.
SELL:
- A sell signal is given when the Market Sentiment indicator displays “Short”.
- Place a stop loss 3 pips above the most recent swing high point.
- Utilize your favorite take-profit method.
Download Now
Download the “Market Sentiment Signal Indicator.ex4” MT4 indicator
Do you want to download the indicator for MT5?
You can download the Market Sentiment Forex Indicator for MT5 here.
Market Sentiment + ADX Breakout Strategy
This strategy enhances the signals from the Market Sentiment Forex Signal Indicator by confirming market strength with the Average Directional Index (ADX).
It helps filter out weak or choppy market conditions and focuses only on strong, trending moves.
Required Indicators
- Market Sentiment Forex Signal Indicator (downloaded from this page)
- ADX (Average Directional Index) with a setting of 14 (default MT4 indicator)
Timeframes
Best applied on the M30 to H4 timeframes for more reliable sentiment and trend signals.
Buy Entry Rules
- The Market Sentiment Indicator must show a bullish signal (e.g., green arrow or uptrend confirmation).
- The ADX value must be above 20, indicating a trending market.
- DI+ (green) line must be above DI– (red) on the ADX indicator.
- Enter a buy trade when all conditions align on the same candle or within the next 1-2 candles.
Sell Entry Rules
- The Market Sentiment Indicator must show a bearish signal (e.g., red arrow or downtrend confirmation).
- The ADX value must be above 20, indicating a trending market.
- DI– (red) line must be above DI+ (green) on the ADX indicator.
- Enter a sell trade when all conditions align on the same candle or within the next 1-2 candles.
Stop Loss and Take Profit
- Stop Loss: Set just below the most recent swing low (for buys) or above the swing high (for sells).
- Take Profit: Use a fixed 1:2 or 1:3 risk-reward ratio, or exit manually when ADX drops below 20, signaling a weakening trend.
Why This Strategy Works
The Market Sentiment Indicator is excellent at identifying potential reversals and trend beginnings.
By combining it with ADX, you ensure the trade is backed by real market strength, which reduces false signals and improves win rates.
Adjustable Parameters & Settings
Show symbol, signal ratio, server time offset, indicator position, interval
Feel free to explore the indicator’s different parameters and settings to create your personalized indicator setup.
More Info About This Indicator
Currency Pairs: works on any currency pair
Trading Platform: developed for Metatrader 4 (MT4)
Time Frames: works on any time frame
Indicator Type: market sentiment with signals
How to install the Market Sentiment Forex Signal indicator in Metatrader 4?
- Copy and paste the Market Sentiment Signal Indicator.ex4 indicator into the MQL4 indicators folder.
- You can access this folder from the top menu as follows:
- File > Open Data Folder > MQL4 > Indicators (paste here)
