$BTC Sentiment reference: Fear & Greed Index 55 (Greed), down 4 from yesterday.
Let’s break down this number.
The market momentum and volume component compares current trading volume with the averages over the past 30 and 90 days. When the market is rising and buying pressure remains strong, it is counted as a sign of greed.
I tend to use this index as background on market sentiment; for specific trades, I still look at my own positions and stop-losses.
The same data can mean very different things in different market conditions, so don’t blindly apply any single rule of thumb.
Let’s break down this number.
The market momentum and volume component compares current trading volume with the averages over the past 30 and 90 days. When the market is rising and buying pressure remains strong, it is counted as a sign of greed.
I tend to use this index as background on market sentiment; for specific trades, I still look at my own positions and stop-losses.
The same data can mean very different things in different market conditions, so don’t blindly apply any single rule of thumb.