How to Read Fear and Greed Index
Understand and interpret the Fear and Greed Index effectively.
The Fear and Greed Index aggregates multiple indicators (volatility, momentum, breadth, options) into a single sentiment score.
Key Insights
Point 1
Important
Use extremes for contrarian context, not precise timing
Point 2
Important
Combine with trend and breadth to avoid false signals
Point 3
Important
Track changes over time rather than absolute numbers
Practical Applications
1
At extreme fear, evaluate risk-reward for staged entries
2
At extreme greed, tighten risk and review exposure
3
Backtest against your strategy before going live
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