Fear & Greed Index vs Put/Call Ratio Analysis
Comprehensive comparison of two leading sentiment indicators and how to use them together for enhanced market timing.
The Fear & Greed Index and Put/Call ratio are complementary sentiment indicators that measure market psychology from different angles. Understanding their relationship enhances market timing decisions.
Key Insights
Point 1
Fear & Greed Index components and calculation
Point 2
Put/Call ratio interpretation and signals
Point 3
Correlation analysis between indicators
Point 4
Divergence signals and their implications
Point 5
Combined sentiment analysis framework
Practical Applications
Use both indicators for sentiment confirmation
Look for divergences as early warning signals
Consider extreme readings as contrarian signals
Monitor both during market turning points
Weight indicators based on market conditions
Related Market Indicators
Frequently Asked Questions
Financial Glossary
Market Capitalization
Total value of company's outstanding shares
Fundamental AnalysisPrice to Earnings Ratio
Valuation metric comparing price to earnings
Fundamental AnalysisDividend Yield
Annual dividend as percentage of stock price
Income InvestingBeta Coefficient
Measure of stock volatility relative to market
Risk ManagementBull Market
Sustained period of rising stock prices
Market Cycles