/**
* Long/Short Ratio Indicators
* Analyze trader sentiment, contrarian signals, extreme ratios
*/
/**
* Analyze sentiment
*/
function analyzeSentiment(ratioData) {
const longPct = ratioData.longPct;
// Overall sentiment
let overall = 'balanced';
if (longPct > 70) {
overall = 'extreme_long';
}
else if (longPct > 55) {
overall = 'moderate_long';
}
else if (longPct < 30) {
overall = 'extreme_short';
}
else if (longPct < 45) {
overall = 'moderate_short';
}
// Retail sentiment
let retail = 'balanced';
if (ratioData.retailLongPct > 55) {
retail = 'long';
}
else if (ratioData.retailLongPct < 45) {
retail = 'short';
}
// Pro sentiment
let pro = 'balanced';
if (ratioData.proLongPct > 55) {
pro = 'long';
}
else if (ratioData.proLongPct < 45) {
pro = 'short';
}
return {
overall,
retail,
pro
};
}
/**
* Detect contrarian signals
*/
function detectContrarian(ratioData) {
// Contrarian: fade retail sentiment
// If retail is 80% long, consider shorts (retail is usually wrong)
const retailLongPct = ratioData.retailLongPct;
let signal = false;
let direction = 'neutral';
let strength = 0;
if (retailLongPct > 70) {
// Retail extremely long = contrarian short signal
signal = true;
direction = 'short';
strength = Math.min(1, (retailLongPct - 70) / 20); // 70-90% range maps to 0-1
}
else if (retailLongPct < 30) {
// Retail extremely short = contrarian long signal
signal = true;
direction = 'long';
strength = Math.min(1, (30 - retailLongPct) / 20); // 10-30% range maps to 0-1
}
return {
signal,
direction,
strength: isNaN(strength) ? 0 : strength
};
}
/**
* Detect extreme ratios
*/
function detectExtreme(ratioData) {
const longPct = ratioData.longPct;
const extreme = longPct > 70 || longPct < 30;
let level = 'normal';
if (longPct > 70) {
level = 'extreme_long';
}
else if (longPct < 30) {
level = 'extreme_short';
}
// Reversal signal: extreme ratios often reverse
const reversalSignal = extreme;
return {
detected: extreme,
level,
reversalSignal
};
}
/**
* Calculate retail vs pro divergence
*/
function calculateDivergence(ratioData) {
const retailLongPct = ratioData.retailLongPct;
const proLongPct = ratioData.proLongPct;
// Divergence: difference between retail and pro positioning
const divergence = (retailLongPct - proLongPct) / 100; // Normalize to -1 to 1
// Signal: follow pro, fade retail
let signal = 'neutral';
if (Math.abs(divergence) > 0.1) {
// Significant divergence
if (divergence > 0) {
// Retail more long than pro = fade retail (go short)
signal = 'fade_retail';
}
else {
// Retail more short than pro = fade retail (go long)
signal = 'fade_retail';
}
}
else if (Math.abs(divergence) < 0.05) {
// Pro and retail aligned = follow pro
signal = 'follow_pro';
}
return {
retailVsPro: isNaN(divergence) ? 0 : Math.max(-1, Math.min(1, divergence)),
signal
};
}
/**
* Calculate long/short ratio indicators
*/
export function calculateLongShortRatioIndicators(ratioData) {
const sentiment = analyzeSentiment(ratioData);
const contrarian = detectContrarian(ratioData);
const extreme = detectExtreme(ratioData);
const divergence = calculateDivergence(ratioData);
return {
sentiment,
contrarian,
extreme,
divergence
};
}
