đ¶ THE CROWD IS ALWAYS LOUDEST RIGHT BEFORE IT'S WRONG.
Sentiment is a tool. Here's how to actually use it.
INDICATOR 1 â Fear & Greed Index
â Below 20 (Extreme Fear) = historically some of the best entries in Bitcoin's history
â Above 80 (Extreme Greed) = historically where tops form
â It's public and free. Check it before every big decision.
INDICATOR 2 â Funding Rates (Binance Futures â Funding History)
â Positive & rising = longs are crowded and paying shorts to stay in
â Deeply negative = shorts are crowded â short-squeeze fuel
â This week's $634M liquidation? Funding was screaming "too many longs" days before
INDICATOR 3 â Long/Short Ratio
â 70%+ long across the exchange = the crowd is on one side of the boat
â Boats tip.
INDICATOR 4 â Your own group chat
â When your non-crypto friends ask how to buy â be careful
â When they say "I told you it was a scam" â pay attention
The rule: Don't fade the crowd blindly. But when sentiment is EXTREME and price is at a key level â that's when contrarian trades have the best risk/reward.
"Be fearful when others are greedy, and greedy when others are fearful."
Still the best trading advice ever written.
What's the Fear & Greed reading right now? Check and drop it below đ
$BTC $ETH
#TradingPsychology #fearandgreed #cryptotrading #TradingTips #BinanceSquare
Sentiment is a tool. Here's how to actually use it.
INDICATOR 1 â Fear & Greed Index
â Below 20 (Extreme Fear) = historically some of the best entries in Bitcoin's history
â Above 80 (Extreme Greed) = historically where tops form
â It's public and free. Check it before every big decision.
INDICATOR 2 â Funding Rates (Binance Futures â Funding History)
â Positive & rising = longs are crowded and paying shorts to stay in
â Deeply negative = shorts are crowded â short-squeeze fuel
â This week's $634M liquidation? Funding was screaming "too many longs" days before
INDICATOR 3 â Long/Short Ratio
â 70%+ long across the exchange = the crowd is on one side of the boat
â Boats tip.
INDICATOR 4 â Your own group chat
â When your non-crypto friends ask how to buy â be careful
â When they say "I told you it was a scam" â pay attention
The rule: Don't fade the crowd blindly. But when sentiment is EXTREME and price is at a key level â that's when contrarian trades have the best risk/reward.
"Be fearful when others are greedy, and greedy when others are fearful."
Still the best trading advice ever written.
What's the Fear & Greed reading right now? Check and drop it below đ
$BTC $ETH
#TradingPsychology #fearandgreed #cryptotrading #TradingTips #BinanceSquare
