A Fear and Greed Index is a type of market sentiment analysis. Fear and Greed indexes take multiple factors into account to gauge the general feeling of traders in a market.
First created for stock markets, Fear and Greed Indexes work on the premise that fear and greed are the key emotions that influence market unpredictability and cause volatility. When fear is running high in a market, assets may become undervalued. On the other hand, in periods of high greed, assets can be overvalued.
Q: What is the fear and greed index?
A: is a tool used by some investors to gauge the market (market sentiment).
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