The Fear and Greed Index is a sentiment gauge from 0 to 100 that estimates whether market participants are feeling fearful or greedy.
The Fear and Greed Index is a market sentiment indicator that scores overall investor emotion from 0 (extreme fear) to 100 (extreme greed).
For crypto, it blends inputs such as volatility, market momentum, social media activity, and trading volume into a single number. Stock-market versions use similar measures of breadth, momentum, and demand for safe havens.
The idea, rooted in contrarian investing, is that extreme fear can signal a buying opportunity when assets are oversold, while extreme greed can warn that a market is overheated and due for a correction.
It is a sentiment snapshot, not a precise timing tool. Many investors use it as a gut-check against their own emotions rather than as a standalone buy or sell signal.
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