Understand how Stratify tracks and analyzes social media sentiment to identify trending stocks and crowd psychology patterns.
Data Sources: Twitter, Reddit (WallStreetBets), StockTwits, and financial news. Updated every 15 minutes during market hours.
1. Data Collection
Scrape mentions from Twitter, Reddit, StockTwits every 15 minutes
2. NLP Processing
Analyze each mention for sentiment using AI models (positive, neutral, negative)
3. Score Aggregation
Calculate weighted average: (positive - negative) / total mentions. Result: -1.0 to +1.0
4. Trend Detection
Track sentiment changes over time (improving, declining, volatile)
Extreme positive sentiment. Strong buy interest. Consider taking profits if you're long - might be exhaustion.
Positive sentiment with room to grow. Good entry zone for sentiment trades. Not yet extreme.
Mixed or low sentiment. No clear crowd direction. Wait for signal to develop.
Negative sentiment. Avoid longs. Could be contrarian buy if fundamentals strong.
Extreme negative sentiment. High risk. Only for advanced contrarian plays.
When sentiment is very positive (0.7+) and rising, that's momentum. Ride it, don't fade it. Exit when it peaks, not before.
Never trade on sentiment alone. Wait for RSI, volume, or price action to confirm before entering.
Sudden 10x spike in mentions often precedes big moves. High attention = high volatility = opportunity.
When sentiment hits 0.9+ (euphoria), take profits. When everyone is bullish, there's no one left to buy.
