Oscilador de Sentimiento PRO

User Manual: Indicator "Dinámicas de Mercado Pro" (DMP)
Author: Profit_Quant
Created by: Gemini AI (2025)
User Manual (English):RSI Sentiment Oscillator PRO
1. General Concept
The "RSI Sentiment Oscillator PRO" is an advanced RSI-type indicator designed to measure the momentum and strength of market sentiment. Unlike a simple line oscillator, this indicator uses a dynamic-width band that visually expands and contracts with the intensity of the sentiment. Its most powerful feature is the automatic detection of four types of divergences, which are key signals for identifying potential trend reversals or continuations.

2. Main Components and Their Interpretation
a) The Oscillator Band (Dynamic Width)
What it is: The main representation of the indicator. It's not just a line, but a filled band.
Dynamic Width: This is its unique feature. The band widens as sentiment becomes more extreme (near overbought at 100 or oversold at 0) and narrows near the neutral zone (50). This gives you an immediate visual sense of the "pressure" or "strength" of the current sentiment.
Band Colors:
Green: The oscillator is in the oversold zone (below 30). Sentiment is extremely bearish, which could precede a bounce.
Red: The oscillator is in the overbought zone (above 70). Sentiment is extremely bullish, which could precede a correction.
Blue: The oscillator is in a neutral zone.
b) Divergence Detection (Key Signals)
Divergences occur when the price and the oscillator move in opposite directions. They are among the most powerful signals in technical analysis.

Regular Divergences (Trend Reversal Signals)
Regular Bullish Divergence (Green):

What to look for: The price makes a lower low, but the oscillator makes a higher low.
Meaning: The price is still falling, but the momentum of the fall is exhausting. It's a potential signal that the downtrend is ending and could reverse to the upside.
Label: Bull Div
Regular Bearish Divergence (Red):

What to look for: The price makes a higher high, but the oscillator makes a lower high.
Meaning: The price is still rising, but the momentum of the rise is weakening. It's a potential signal that the uptrend is losing steam and could reverse to the downside.
Label: Bear Div
Hidden Divergences (Trend Continuation Signals)
Hidden Bullish Divergence (Yellow):

What to look for: The price makes a higher low (a pullback in an uptrend), but the oscillator makes a lower low.
Meaning: The current pullback is a "buy the dip" opportunity to join the main uptrend. It indicates that the uptrend is likely to continue.
Label: Bull Hid
Hidden Bearish Divergence (Orange):

What to look for: The price makes a lower high (a rally in a downtrend), but the oscillator makes a higher high.
Meaning: The current rally is a "sell the rally" opportunity to join the main downtrend. It indicates that the downtrend is likely to continue.
Label: Bear Hid
3. Trading Strategies
Reversal Trading: Use Regular Divergences as your primary signal. A green Bull Div in the oversold zone is a powerful buy signal. A red Bear Div in the overbought zone is a powerful sell signal.
Continuation Trading: Use Hidden Divergences to enter in the direction of the trend. A yellow Bull Hid during a pullback in an uptrend confirms that it's a good time to buy.
Volume Filter: By default, the indicator requires the volume on the second pivot of a regular divergence to be lower. This increases the reliability of the signal, as it confirms the "loss of conviction" in the price move.
4. Final Disclaimer
Divergences are high-probability signals, not certainties. Always use this indicator in confluence with your own analysis of market structure, support, resistance, and strict risk management.
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