BlockHouse Bull/Bear Sentiment Indicator

Understanding the Indicator

Most Bull/Bear indicators available today tend to focus primarily on short-term market movements, which often leads to noisy signals and makes it difficult for investors to extract meaningful insights. These indicators can overreact to temporary fluctuations and fail to capture the broader market narrative. At BlockHouse, we addressed this limitation by combining a comprehensive range of short-, medium-, and long-term indicators that incorporate both microeconomic data and macroeconomic trends. This approach allows us to build an indicator that is not only more reliable, but also accurately reflects underlying market sentiment and price action—offering a clearer, more stable view of investor behavior.

The BlockHouse Bull/Bear Sentiment Indicator is a proprietary metric designed to quantify the overall mood of investors in the financial markets. It gives a score between 0 and 100, where:

• 0–20: Extreme Bearishness – Investors are highly pessimistic.
• 21–40: Bearishness – Negative sentiment outweighs optimism.
• 41–60: Neutral – A balanced outlook, with no clear direction.
• 61–80: Bullishness – Investors are increasingly optimistic.
• 81–100: Extreme Bullishness – Market sentiment is overwhelmingly positive.

Monitoring sentiment helps identify potential turning points in the market, as excessive fear or greed can often precede reversals. Our indicator is calculated using a blend of market-based metrics, technical signals, and behavioral data.

For comparison, another widely used sentiment gauge is the CNN Fear & Greed Index, which tracks similar investor emotions using factors like volatility, market momentum, and demand for safe haven assets.

Disclaimer: This indicator is for informational purposes only and should not be considered as financial advice or a recommendation to buy or sell any security. Market conditions can change rapidly. Past performance is not indicative of future results.