Foundations · Chapter 5 of 31
What is the Fear and Greed index?
A single 0 to 100 gauge of market sentiment, and why extremes of fear or greed are worth noticing.
The Fear and Greed index condenses several sentiment measures, such as volatility, momentum, and demand, into one number from 0 (extreme fear) to 100 (extreme greed).
A contrarian lens
Extreme fear can mean sellers are exhausted, while extreme greed can mean a market is overextended. Many treat the extremes as a contrarian signal rather than a trend to chase.
Sentiment, not certainty
The index is a mood reading, not a forecast. Markets can stay fearful or greedy for a while, so it works best as context alongside other signals.
How to read it here
Use it as a quick temperature check on the whole market before you dig into a specific instrument.
Now watch this signal update in real time across the market.
See it liveEducational content, not financial advice.