Extreme Sentiment Divergence Strategy (Extreme Sentiment Divergence)



Core logic: The market is in an extreme state of greed or panic (for example, within 1 minute, 90% of the orders are buy/sell orders), and the price is deviating too far from the 5-minute moving average. At this point, the market is “overloaded,” and a collapse or a sharp rebound may happen at any time.

Overload risk alert: The order book enters the 'extreme greed/panic' zone, and the buy-sell imbalance reaches a critical value. This 'one-way sentiment overload' has already used up the buying power/selling power for the next 15 minutes. According to the mean reversion principle, the price is about to face a fierce correction like a “cut-off-the-retreat” reversal.
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