We often pay attention to the speedometer of “Fear and Greed.” Using this indicator, you can calculate the local bottom or high in the market.

The Fear and Greed Index helps gauge market sentiment and identify potential market trends. The index is a numerical measurement of the emotions of fear and greed in the market and is calculated based on various indicators and factors.

⚙️ How does the fear and greed index work?

The Fear and Greed Index is a tool that measures the emotional state of the market by analyzing various factors including volatility, long/short ratios, market momentum and more. The index is designed to help traders determine whether the market is in a state of fear or greed. These emotions can significantly influence investment decisions and change market trends. The index is calculated on a scale from 0 to 100. Where 0 indicates extreme fear and 100 indicates extreme greed. A value of 50 is considered neutral, indicating that the market is in equilibrium.

🕐 What's on the speedometer now?

The stock market speedometer has entered the fear zone. It is noteworthy that just 2 weeks ago the speedometer showed the greed of traders. Moreover, the quotes both today and last time were at +- current levels.

In the crypto market, the indicator also signals the fear of traders. Judging by this indicator, we have already reached the local bottom or are already close to it.

Therefore, the market may jump up before continuing to fall.

💡 By the way, important data on unemployment in the US will be released today at 16:30 Moscow time. It is these data that traders around the world will now be watching to understand the Fed’s further actions. Therefore, volatility in the market today is guaranteed.