Combines volatility, momentum, social media, and surveys into a 0–100 sentiment score.
How Fear & Greed Index is calculated
0–25 Extreme Fear, 25–45 Fear, 45–55 Neutral, 55–75 Greed, 75–100 Extreme Greed.
How to read it
- Sentiment and derivatives metrics change quickly and are useful for gauging crowding and leverage risk.
- Extreme readings often coincide with short-term volatility; manage position size and liquidation distance before taking a view.
Limitations and common misreads
- Historical thresholds come from a limited sample; future cycles can differ.
- Data providers can define the metric differently; cite the data date when quoting it.
- A single indicator is not investment advice and does not guarantee price direction.
Related indicators
Research and education only; not investment advice.
