Fear and Greed index

The index scale measures the level of "fear" (Fear) and "greed" (Greed) in the market.

Fear occurs during periods of high volatility, uncertainty and fear of price drops.

Greed is the dominant emotion during periods of rising prices, where investors are more willing to take risks.

Fear and Greed Index scale:

😱0 – 24: Fear

High fear of price drops, high volatility, undervaluation of assets.

😐25 – 49: Neutrality

No clear emotions, investors are waiting for the market direction.

😲50 – 74: Greed

Increased interest, self-confidence, higher prices.

👹75 – 100: Extreme greed

High optimism, possible risk of a speculative bubble.

High fear can signal buying opportunities at lows.

High greed can warn of an overheated market and the possibility of a correction or decline.

Traders can use it as an additional tool to confirm their strategy.

It can help avoid “buying high” or “selling low.”