RiskOn and RiskOff sentiment waves

Constructing the Moodix Index™

The Moodix Index™ is  crucial for constructing all other parameters including Sentiment waves (see below).

For any period of time (intraday, week, month, YTD) the Moodix Index is the running sum of all Impact Scores recorded inside the specific period. The figure refreshes every 3–4 minutes—roughly the time it takes to vet a new headline—so users see sentiment almost in real time. A negative reading means bearish news flow dominated; a positive one signals bullish dominance.

So the value of the Moodix Index is the sum of the values of the measured breaking news over a specified time period, i.e. the accumulation of market reactions to breaking news over a specified period of time. It is a quantification of the market’s reaction to fundamentals.

Sentiment waves: RiskOn vs RiskOff

Out of the measured Moodix index™, we calculate (according to the aforementioned market memory) five- and ten-day moving averages for 5 (MA5) and 10 (MA10) days. This allows us to see what the average sentiment of the market is at the more distant (MA10) and closer (MA5) boundary of its memory. Their relative position, distance and the difference in their values (MA10 from MA5) then creates Moodix sentiment waves™. If the resulting value is negative, we call this wave RiskOff. If it is positive, we call it RiskOn.

Individual waves last from a few days to a few weeks or months.

RiskOn wave – MA‑5 and Moodix index above MA‑10 (net bullish pressure)
RiskOff wave – MA‑5  and Moodix index below MA‑10 (net bearish pressure)
Waves typically last from several days to a few weeks, but a single “game‑changer” headline can flip them within hours—hence the continuous updates.