Closing score from range location as a volume-checked sentiment filter

How the closing score is built

A closing score can be constructed on a 0-to-100 scale by mapping a session low to 0 and a session high to 100, then locating the close on that span. Range location is where that last print sits inside the bar's high-low span.

The reading stays inside a single session bar. It rescales the close against the same high and low that already contain it.

Price as a sentiment reading

The latest traded price was presented as the meeting point of many sentiment information streams and as a collective reading of current trader sentiment. Price as sentiment treats that last print as the single observable where competing views of value have already been resolved.

Dominant trader emotion was described as showing up in supply and demand, so that excess demand lifts price and excess supply lowers it. Sentiment inferred from price was described as able either to lag or to anticipate the events later associated with that mood shift.

Volume check for continuation or reversal

Pairing the closing score with volume was used to judge whether a trend was more likely to continue or whether a reversal was becoming more likely. The volume check uses volume with the close-location score to judge whether participation supports continuation or warns of reversal.

News tone and tick reading listed beside it

News-based word analysis using language processing was listed as one way to score document tone, but many such services were described as costly for independent traders. A price-and-volume technical construction was offered as a lower-cost way to measure sentiment without relying on paid external data products.

An intraday tick reading based on executions relative to the bid and ask was listed as a real-time view of short-term sentiment swings. Tick reading is an intraday gauge of whether prints are occurring nearer the bid or the ask.