Sentiment Analysis
Composite sentiment scoring, Fear and Greed interpretation, funding rate signals, and social sentiment filtering.
Sentiment Analysis is a skill for CLI Trader that provides a systematic framework for measuring, interpreting, and trading on market sentiment across crypto and stock markets. Sentiment is one of the most powerful yet most misused inputs in trading — used correctly, it identifies crowd positioning extremes that precede reversals, but used naively, it leads to fighting strong trends. This skill gives your agent the methodology to construct composite sentiment scores, filter noise from signal, and determine when sentiment data is actionable.
The skill builds a multi-layered sentiment picture by combining quantitative indicators with filtered social data. The composite sentiment score aggregates the Fear and Greed index with historical context to identify where current readings fall relative to past extremes and subsequent price behavior. Funding rates on perpetual futures markets serve as a direct measure of leveraged trader positioning, with the skill defining specific percentile thresholds that historically precede mean reversion. Social sentiment from Twitter, Reddit, and Telegram is processed through noise filters that account for bot activity, account credibility, volume normalization, and cross-platform confirmation to extract genuine shifts in crowd opinion. News sentiment analysis applies similar filtering to headline flow, distinguishing market-moving information from recycled narratives. The skill ties these components together into a unified scoring system with clear contrarian signal triggers when multiple indicators align at extremes.
Within a CLI trading workflow, this skill serves as the sentiment overlay that enriches trade decisions made from technical or fundamental analysis. Connect it to social media APIs, on-chain data feeds for funding rates, and market data for Fear and Greed inputs, and the agent produces a real-time sentiment assessment with actionable conclusions. It is particularly valuable as a timing tool — when your directional analysis says buy but sentiment is already euphoric, the skill flags the elevated risk of a crowded trade and suggests waiting for a sentiment reset before entering.
For the complete methodology — including formulas, decision trees, worked examples, and validation checklists — see the full Sentiment Analysis skill guide.