This indicator assesses the sentiment of investors and traders in the market, and determines whether they are in a state of fear or greed.
The index ranges from 0 to 100.
Where 0 means maximum fear, and 100 means maximum greed.
It is a tool that helps us as investors and traders to understand the market and through it we can determine when to buy and sell.
I will now translate for you the meaning of the numbers that appear on the indicator!
🟢 Extreme Fear (0-25): When the indicator shows the extreme fear level, this means that investors and traders are in a state of extreme pessimism due to negative news in the market from a government, legitimate authority, or other.
At this stage, currency prices are below their real value, and it is often an excellent buy signal!
🟢 Fear (26-49): Fear indicates that investors and traders are in a state of caution in the market, whether the market may decline further and continue to correct, or that the market will begin to reverse the downward trend to an upward one.
At this stage, currency prices are relatively low, and it is often a signal to start buying gradually.
🟢 Neutral (50): Indicates that the market is balanced and investors and traders do not show any kind of fear or greed. It is often a sweet stage for speculators and investors are waiting for a clear signal to determine the market direction.
🟢 Greed (51-74): Greed indicates that investors are optimistic and the market is growing healthily.
This indicates that currency prices have begun to inflate, and is often a signal to start selling gradually 💎
🟢 Extreme Greed (75-100): Extreme levels of greed indicate extreme optimism, positive news, and media hype everywhere from radio and TV channels to social media.
At such moments, currency prices are greatly inflated, and it is often a signal to sell. 🔝