Chapter 9
What is Market Maker Sentiment?
What is Market Maker Sentiment?
Measures the difference between market makers' total LONG and SHORT position sizes. Calculates the deviation from the historical average using the rolling z-score method.
Indicator | Description
z-score | How many standard deviations the net delta is from the historical average. Around 0 = neutral, beyond ±1.5 = extreme positioning
Percentile | The percentile of the current z-score in the historical distribution
LONG / SHORT Volume | Market makers' total position distribution (in USD)
24h Sparkline | Mini chart of z-score change in the last 24 hours
Contrarian Alerts
z-score Range | Status | Alert
z > +1.5 | Extreme Long | Contrarian SHORT alert: market carries reversal risk
z < −1.5 | Extreme Short | Contrarian LONG alert: extreme selling pressure may reverse direction
−1.5 ≤ z ≤ +1.5 | Neutral | No significant contrarian alert
💡 Pro Tip
Market makers generally trade on the opposite side of retail investors. Therefore MM Sentiment is used as a contrarian indicator. When z-score goes to extremes, the probability of direction change increases. Track which direction the trend is evolving with the gauge needle and sparkline chart.
Indicator | Description
z-score | How many standard deviations the net delta is from the historical average. Around 0 = neutral, beyond ±1.5 = extreme positioning
Percentile | The percentile of the current z-score in the historical distribution
LONG / SHORT Volume | Market makers' total position distribution (in USD)
24h Sparkline | Mini chart of z-score change in the last 24 hours
Contrarian Alerts
z-score Range | Status | Alert
z > +1.5 | Extreme Long | Contrarian SHORT alert: market carries reversal risk
z < −1.5 | Extreme Short | Contrarian LONG alert: extreme selling pressure may reverse direction
−1.5 ≤ z ≤ +1.5 | Neutral | No significant contrarian alert
💡 Pro Tip
Market makers generally trade on the opposite side of retail investors. Therefore MM Sentiment is used as a contrarian indicator. When z-score goes to extremes, the probability of direction change increases. Track which direction the trend is evolving with the gauge needle and sparkline chart.
This content is for education and analysis only, not investment advice. Market tools offer probability and context, not certainty; the decision is the user responsibility.