Fear & Greed Index: How to Use It in Trading?

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The Fear & Greed Index is one of the market sentiment indicators commonly used by traders. But how can it be utilized to identify trading opportunities?

What is the Fear & Greed Index?

This indicator measures market sentiment based on factors such as volatility, volume, and social media.

0-25 (Extreme Fear): The market is in fear, which could be a buying opportunity.

26-50 (Fear): Fear still exists, but is beginning to subside.

51-75 (Greed): The market is starting to get greedy, be cautious of corrections.

76-100 (Extreme Greed): High euphoria, which could be a sign of a market peak.

Trading Strategy Using the Fear & Greed Index

Buy When Extreme Fear: Many people are panicking, but this is actually a cheap buying opportunity.

Sell When Extreme Greed: When the market is too euphoric, prices may correct.

➡️ Currently, the Fear & Greed Index is at level X. Is this the right time to enter or exit the market?