Fear and Greed Index

The Fear and Greed Index measures the overall mood of investors in the stock market. It gauges whether investors are overly optimistic (greed) or overly anxious (fear), based on various indicators like market volatility, trading volumes, and trend strength. A high greed score suggests bullishness and potential overvaluation, while a high fear score indicates caution or panic, possibly signaling a market bottom. Investors use this index to assess market sentiment and make informed decisions, recognizing that extreme fear or greed can foreshadow reversals or continued trends.