How to Use Moodix

2.1  Start with the news

Moodix does the heavy lifting by detecting which headlines actually moved the market, but context is still king.

• Read the breaking‑news feed every day.
• Spend roughly one‑third of the time you save thanks to Moodix on thinking about the stories behind the waves.
• Ask yourself: *If this topic is pushing prices up or down now, how might the market digest it over the next hours, days or weeks?*

Traders who combine the waves with a habit of reviewing the underlying headlines consistently achieve better results than those who rely on the curves alone.

2.2  Follow the topics that matter

• Each validated headline is tagged to a market topic—FED, Macro, Geopolitics, China, and so on.
• When a topic accumulates enough headlines, it gets its own cumulative topic index.
• Watching these indexes reveals which narrative is currently in control and whether its pressure on the market is building or fading.
• Example: a rising Macro index alongside falling prices often signals that deteriorating economic data are the core driver of the decline.

2.3  Meet the sentiment waves

Moodix visualises market mood as waves that can be either RiskOn (bullish pressure) or RiskOff (bearish pressure).

• Wave strength is the distance of the Moodix Index™ from its five‑ and ten‑day moving averages (MA‑5 and MA‑10).
• Wave length is how long this positive or negative pressure lasts.
• Longer and deeper waves point to more decisive sentiment—and bigger trading opportunities.

2.4  Trend states inside each wave

Wave & Trend	What it means	Typical trader response
RiskOn – growing	Fresh bullish appetite; Moodix Index above both MA‑5 and MA‑10	Add long exposure; buy the dips
RiskOn – sideways	Positive mood is tiring; sideways prices likely	Enter new longs cautiously; expect range trading
RiskOn – fading	Positive mood reversing; Index slips below MA‑5	Reduce longs; wait for clarity or a switch to RiskOff
RiskOff – growing	Accelerating bearish pressure; Index below both MAs	Hedge, cut longs, consider tactical shorts
RiskOff – sideways	Negative mood stalling; first hints of a floor	Look for early signals of a RiskOn turn
RiskOff – fading	Bearish pressure easing fast; Index climbs above both MAs	Prepare to rotate back into risk assets
No trend	Sentiment indecisive; sideways market	Stay patient until a new wave emerges

2.5  Choosing the right time frame

Time frame	Main inputs	Use case
Long‑term (weekly, daily)	Moodix Index™	Portfolio allocation; macro regime shifts
Medium‑term (4 h – 30 m)	Weekly sentiment + Moodix Index™	Swing trades lasting days / weeks
Short‑term (10 m – 1 m)	Intraday sentiment + weekly + Moodix Index™	Day‑trading; risk management

2.6  Plug Moodix into your own tools

If you run algos or custom dashboards, the Moodix API delivers the current index, wave state and topic scores in real time. Build your own decision trees on top and automate the use‑cases described above. (See the API reference for endpoints and code examples.)

Key takeaways

• Use the waves to see *where* sentiment is, and the headlines to understand *why*.
• Match your trading horizon with the appropriate Moodix inputs.
• Confirm every signal at the daily close before acting.