Markets are rarely driven by logic alone. More often, they move on emotion, expectation,
and perception. That is what sentiment indicators attempt to capture, the invisible forces
behind price action. While no single metric can predict a move, understanding sentiment adds depth to technical analysis. And with the variety of sentiment tools available on
TradingView, you can begin to see what most traders miss.
Reading the crowd through open interest and funding
In crypto and futures markets, open interest and funding rates tell powerful stories. If open
interest is rising while price moves up, it suggests confidence. If it rises while price stalls, it
may signal overconfidence and a potential reversal. Funding rates, particularly in crypto,
show when traders are leaning too heavily in one direction.
Custom scripts on TradingView allow you to overlay these metrics right on your chart. This
lets you track when long or short bias becomes extreme and prepare for the kind of sharp
rebalancing that often follows.
Social sentiment and keyword heatmaps
Some sentiment indicators go beyond price and volume. They tap into social platforms to
gauge trader excitement or fear. These scripts scan forums, headlines, or Twitter activity to
rank keywords and sentiment scores.
While this may sound experimental, it is surprisingly useful when paired with price action. A
spike in bullish sentiment without confirmation in price may signal a fading rally.
TradingView offers sentiment overlays that track keyword trends and map sentiment shifts
onto asset charts in real time.
Fear and greed meters that add emotional awareness
Many traders ignore emotion until it costs them money. Fear and greed indexes are simple
but effective tools that measure emotional extremes. When greed peaks, caution is often
wise. When fear dominates, opportunities may arise.
TradingView features various scripts that bring this concept onto the chart itself. You can
view the historical correlation between sentiment levels and price action, which helps identify
points of exhaustion or reversal.
Commitment of Traders (COT) and large player positioning
In traditional markets, the Commitment of Traders report provides insight into how
institutional and commercial traders are positioned. This is not daily data, but it gives longer-
term context. For swing and position traders, these figures can serve as a compass.
Some advanced scripts on TradingView visualize COT data across asset classes. This
turns complex data tables into easy-to-read charts, allowing traders to align with or fade
large speculator behavior depending on market context.
Sentiment as a secondary filter, not a signal generator
It is important to remember that sentiment tools should not be used in isolation. They are
most effective when combined with structure and momentum. A resistance zone, paired with
overheated sentiment and weakening volume, creates a far stronger setup than any single
metric alone.
TradingView allows users to group indicators visually, apply alerts based on multiple
conditions, and even create dashboards that combine sentiment readings with price action.
This layered approach builds a narrative rather than a simple trigger.
Making sense of sentiment means observing how the crowd feels and when that feeling
becomes dangerous. With the flexible scripting environment and wide variety of user-created
tools, TradingView lets traders harness emotion as part of the process rather than being
controlled by it.