Fear & Greed Index Definition - Glossary

Fear & Greed Index is a metric that gauges market sentiment to indicate potential buying or selling opportunities.

Fear & Greed Index is a tool used to measure the prevailing sentiment in the cryptocurrency and traditional financial markets. It ranges from 0 (extreme fear) to 100 (extreme greed). The index aggregates various indicators such as volatility, trading volume, social media trends, and market momentum. When the index shows extreme fear, it suggests that investors are too worried, potentially presenting buying opportunities. Conversely, extreme greed can indicate that the market is due for a correction. By understanding investor emotions, traders can make more informed decisions about when to enter or exit positions.