Practical Education: How to Use the 'Fear & Greed Index'
The "Fear & Greed Index" is a sentiment indicator that measures market emotions. It ranges from 0 (Extreme Fear) to 100 (Extreme Greed). The contrarian strategy is simple: consider buying when the market is in "Extreme Fear," as it may indicate a capitulation and a good entry point. Consider taking profits when the index shows "Extreme Greed," as it may signal a market top. It should not be used alone, but it is a great tool for gauging the market's pulse.
Understand the overall sentiment before trading $BTC. Research the "Crypto Fear & Greed Index" and compare it with the current chart to validate your analysis.