BAYESIAN SENTIMENT MOMENTUM OSCILLATOR Trading Guide

The Bayesian Sentiment Momentum Oscillator is a quantitative technical analysis tool. Bayesian Sentiment Momentum Oscillator (BSMO) A probabilistic oscillator that evaluates multiple price-action and volume features, updating a Bayesian probability score of buyer control (0% to 100%).

What does the indicator show?

• Market Structure & Momentum: Visualizes prevailing trend directions and key reversal zones.
• BUY / SELL Signals: Highlights confirmed entry and exit opportunities based on quantitative rules.
• Dynamic Boundaries: Provides adaptive levels for managing trade risk and reward expectations.

Key Settings

• Lookback Period (length): Controls the calculation period and sensitivity for market detection.
• Smoothing Period (smooth): Controls the calculation period and sensitivity for market detection.
• Bull Sentiment Line (bullTrend): Controls the calculation period and sensitivity for market detection.
• Bear Sentiment Line (bearTrend): Controls the calculation period and sensitivity for market detection.
• Neutral Sentiment Line (neutral): Controls the calculation period and sensitivity for market detection.
• Bullish Zone Fill (bullZone): Controls the calculation period and sensitivity for market detection.
• Bearish Zone Fill (bearZone): Controls the calculation period and sensitivity for market detection.
• Boundary Levels (levelLine): Controls the calculation period and sensitivity for market detection.
• Midpoint Line (50%) (zeroLine): Controls the calculation period and sensitivity for market detection.
• Sentiment Prob % (bsmo): Controls the calculation period and sensitivity for market detection.
• Sentiment Score (bsmo): Controls the calculation period and sensitivity for market detection.
• Is Bull Sentiment (> 70%) (isBullSentiment): Controls the calculation period and sensitivity for market detection.
• Is Bear Sentiment (< 30%) (isBearSentiment): Controls the calculation period and sensitivity for market detection.
• Is Neutral Sentiment (30%-70%) (isNeutralSentiment): Controls the calculation period and sensitivity for market detection.

How to use Strategy Parameters (Condition Source)

Within the Strategy Tester module, this indicator can be used both as a direct signal source and as a market-state filter.

1. Signal Events

• isBullSentiment - Is Bull Sentiment (> 70%) event signal.
• isBearSentiment - Is Bear Sentiment (< 30%) event signal.
• isNeutralSentiment - Is Neutral Sentiment (30%-70%) event signal.

2. Filters and Trade Levels

• length - Lookback Period value used for structural qualification or thresholds.
• smooth - Smoothing Period value used for structural qualification or thresholds.
• bsmo - Sentiment Prob % value used for structural qualification or thresholds.
• bsmo - Sentiment Score value used for structural qualification or thresholds.

Strategy Example: Enter Long when buySignal is true and trendFilter == 1, ensuring trades align with dominant momentum.