Hey guys,
By recent Fear&Greed Index bitcoin is in extreme greed area, usually it's a sign of decline in price or even crash. I've been observing this index for quite some time and find it pretty accurate, of course it doesn't give you the exact day or time but it indicates the sentiment on the market. Do you ever use this index in your trading analysis?
I am hearing about this Fear and Greed index for the first time lol. How do they even calculate those indexes? Wouldn't that be always high since when price starts dropping, there are people who starts investing because they fear that they will miss out on making maximum profit, and then when the price starts increasing, there will be people wanting to cash out and be scared that the price might crash anytime.
I have never heard from anyone referring to this index, so I doubt no one actually uses those index when trading. Those index kind of looks like it spreads FUD.