❓ What is the Fear and Greed Index?
The Fear & Greed Index shows the general mood of traders in the market.
1. Fear (0-49) indicates low prices and the willingness of investors to sell coins. Greed (50-100) indicates heightened buying interest and market overheating.
2. The index takes into account 5 factors:
- change in market volatility compared to the average.
- increase / decrease in trading volumes per day.
- activity in social networks by keywords (Bitcoin) and general mood.
- change in BTC market share: growth = conservative mood, fall = greed of investors in pursuit of xx on altcoins.
- change of indicators in Google Trends for keywords.
3. The index reflects the past or current market situation, but does not predict anything. It should be used to understand the general mood. Usually, profit is best taken when investors have maximum greed. And to buy back tokens when everyone sells in fear.
#Tutorial
The Fear & Greed Index shows the general mood of traders in the market.
1. Fear (0-49) indicates low prices and the willingness of investors to sell coins. Greed (50-100) indicates heightened buying interest and market overheating.
2. The index takes into account 5 factors:
- change in market volatility compared to the average.
- increase / decrease in trading volumes per day.
- activity in social networks by keywords (Bitcoin) and general mood.
- change in BTC market share: growth = conservative mood, fall = greed of investors in pursuit of xx on altcoins.
- change of indicators in Google Trends for keywords.
3. The index reflects the past or current market situation, but does not predict anything. It should be used to understand the general mood. Usually, profit is best taken when investors have maximum greed. And to buy back tokens when everyone sells in fear.
#Tutorial