Extreme greed on the market

[8m_zk]

Hey guys,
By recent Fear&Greed Index bitcoin is in extreme greed area, usually it's a sign of decline in price or even crash. I've been observing this index for quite some time and find it pretty accurate, of course it doesn't give you the exact day or time but it indicates the sentiment on the market. Do you ever use this index in your trading analysis?

[1714769090]

1714769090

[1714769090]

1714769090

[exstasie]

Hey guys,
By recent Fear&Greed Index bitcoin is in extreme greed area, usually it's a sign of decline in price or even crash. I've been observing this index for quite some time and find it pretty accurate, of course it doesn't give you the exact day or time but it indicates the sentiment on the market. Do you ever use this index in your trading analysis?

Just like funding rate and long vs. short data, it's good to keep an eye on it. It's good for giving a warning of impending capitulation or blow-off top, yes.

Unfortunately, it can be deceptive. I can't tell you the number of times I've heard "the index is greedy, we need a correction!" and then the correction doesn't come until price is 20-30% higher.

Sentiment works a lot like momentum oscillators like RSI and such. During a range market, it's safe and sensible to sell overbought and oversold levels. However during a very strong trend, momentum can become embedded in overbought or oversold zones for a long time. In the same way, during a very strong bull trend, the market can remain "greedy" for quite some time before the eventual crash comes.

To put it more simply: it's pretty difficult to trade based on sentiment alone because it's difficult to time. You'll want to look for other technical reversal signs too.

[8m_zk]

Thanks for your comment, agree with you that for technical reversal there must be some better confirmation signals, I watch key S/R zones, trend lines and MA breaks and yes, during strong trend or range market stochastic or other oscillators can be overbought/oversold for a long time. I also keep an eye on divergences in price and indicators, sometimes they signal a price reversal too.

Hey guys,
By recent Fear&Greed Index bitcoin is in extreme greed area, usually it's a sign of decline in price or even crash. I've been observing this index for quite some time and find it pretty accurate, of course it doesn't give you the exact day or time but it indicates the sentiment on the market. Do you ever use this index in your trading analysis?

Just like funding rate and long vs. short data, it's good to keep an eye on it. It's good for giving a warning of impending capitulation or blow-off top, yes.

Unfortunately, it can be deceptive. I can't tell you the number of times I've heard "the index is greedy, we need a correction!" and then the correction doesn't come until price is 20-30% higher.

Sentiment works a lot like momentum oscillators like RSI and such. During a range market, it's safe and sensible to sell overbought and oversold levels. However during a very strong trend, momentum can become embedded in overbought or oversold zones for a long time. In the same way, during a very strong bull trend, the market can remain "greedy" for quite some time before the eventual crash comes.

To put it more simply: it's pretty difficult to trade based on sentiment alone because it's difficult to time. You'll want to look for other technical reversal signs too.

[GreatArkansas]

Besides that Fear & greed index indicator, I am more using the volume of chart or much better if the Relative Strength Indicator (RSI) also a momentum indicator.
Since using RSI on your chart, it also indicates if the momentum of the market, like if the chart is oversold or overbought. The higher timeframe you will use in your chart, it's much better in RSI, just my 2 cents.

[8m_zk]

Thanks, do you think the volume indicator is reliable?

Besides that Fear & greed index indicator, I am more using the volume of chart or much better if the Relative Strength Indicator (RSI) also a momentum indicator.
Since using RSI on your chart, it also indicates if the momentum of the market, like if the chart is oversold or overbought. The higher timeframe you will use in your chart, it's much better in RSI, just my 2 cents.

[jossiel]

I don't use that index but I can say that it's actually saying the real thing that most of the people are greedy because of what we're seeing. Just like you, that's also my observation.

It's an helpful index if you're too conservative with your trades. But as a long time holder, this doesn't affect my decision making.

[Harriti]

Hey guys,
By recent Fear&Greed Index bitcoin is in extreme greed area, usually it's a sign of decline in price or even crash. I've been observing this index for quite some time and find it pretty accurate, of course it doesn't give you the exact day or time but it indicates the sentiment on the market. Do you ever use this index in your trading analysis?

Yes, it is a very important indicator of when the market reverses. even Volume is a very good data to determine whether the growth is about to end or not.
when the index of greed is extreme, it manifests the human mentality of fomo and they are subjective. The sharks love this sign because it is the right time for them to sell off. If you are a full time trader, learn to understand the Fear and Greed metrics. It will make you a lot of money if you are proficient.

[Emily Perkins]

Do you mean total bitcoin traded volume data? If volume declines that means a trend reversal and vice versa?

Hey guys,
By recent Fear&Greed Index bitcoin is in extreme greed area, usually it's a sign of decline in price or even crash. I've been observing this index for quite some time and find it pretty accurate, of course it doesn't give you the exact day or time but it indicates the sentiment on the market. Do you ever use this index in your trading analysis?

Yes, it is a very important indicator of when the market reverses. even Volume is a very good data to determine whether the growth is about to end or not.
when the index of greed is extreme, it manifests the human mentality of fomo and they are subjective. The sharks love this sign because it is the right time for them to sell off. If you are a full time trader, learn to understand the Fear and Greed metrics. It will make you a lot of money if you are proficient.

[target]

Was also disappointed to see my USDT is just sitting on my account waiting for the correction to happen but it just continues to go north. I use to hear users who analyzed the market that it can't sustain that long and when RSI tells the market that its overbought, it's got to go down. And then the thought also that I'm still a newbie in analyzing charts made me think I'm also wrong.

Not using as such in deciding the trades or investment, though it can happen that some correction can take place, but since it will affect more of daily traders/speculators who go long or short in futures etc. For a long-term investor who invest and keep it would not affect much only thing on fall gets an opportunity to buy more.

An opportunity to buy more is actually what some of us are looking after. If the price ain't dumping, the opportunity to earn more USD passed as well.

[palle11]

Hey guys,
By recent Fear&Greed Index bitcoin is in extreme greed area, usually it's a sign of decline in price or even crash.

I think a time for such down is coming but nobody can give accurate time to it. The price have been steady on the up since it got above $12,000. It may be getting to a strong area for another drop. It had a little step down from 15,000 after shooting high towards 16,000.

[8m_zk]

Well..in trading I don't think anybody can give any accurate time on any movement but should keep an eye on some indirect signs and indicators of  possible corrective pullback or bullrun continuation.

Hey guys,
By recent Fear&Greed Index bitcoin is in extreme greed area, usually it's a sign of decline in price or even crash.

I think a time for such down is coming but nobody can give accurate time to it. The price have been steady on the up since it got above $12,000. It may be getting to a strong area for another drop. It had a little step down from 15,000 after shooting high towards 16,000.

[GreatArkansas]

Thanks, do you think the volume indicator is reliable?

(.....)

Yes for me since I am using the volume indicator and the Relative Strength Index (RSI) at the same time or neither of the two.
There are a lot of analyses by just looking for volume, there you can see also if it's like the volume is not that good for that pump or breakout.
But since if we only looking for greed on the market, I rather use the Relative Strength Index (RSI), or combination with Volume indicator.

[Beparanf]

Hey guys,
By recent Fear&Greed Index bitcoin is in extreme greed area, usually it's a sign of decline in price or even crash. I've been observing this index for quite some time and find it pretty accurate, of course it doesn't give you the exact day or time but it indicates the sentiment on the market. Do you ever use this index in your trading analysis?

Nope. This tool is just for trader that trade based on what they feel about the market. Fear and Greed index are just measuring the ratio of buy to sell power that's why they come up to that index. That Greed sign usually stay that for a long period time especially when bull run so it might cause you to panic and early sell once you rely on it. It's still better to use indicators and sign like Doji for trend reversal rather than that index.

[DarkDays]

Hey guys,
By recent Fear&Greed Index bitcoin is in extreme greed area, usually it's a sign of decline in price or even crash. I've been observing this index for quite some time and find it pretty accurate, of course it doesn't give you the exact day or time but it indicates the sentiment on the market. Do you ever use this index in your trading analysis?

Yes, I use the Index quite a lot when trading. It lets me see what other people are doing and helping me to decide on my strategy. I even use it when trying to get a feel of the market also. The one integrated on CoinGecko is also quite good, specially when looking to buy in on Alts.

[ololajulo]

I don't use that index but I can say that it's actually saying the real thing that most of the people are greedy because of what we're seeing. Just like you, that's also my observation.

It's an helpful index if you're too conservative with your trades. But as a long time holder, this doesn't affect my decision making.

Checking the fear and greed index, it show 7 factors that are considered to determine the movement of the index; social media, dominance, Volatility, market momentum and volume, surveys and trend. The parameters are with different percentage and they sum-up together to give the direction of movement of the index on greed and fear of traders in the bitcoin market.

[death69]

I never use this index. Honestly, this the first time I have heard of it. Though, it is quite interesting to me. So many indicators have been created just to please trader and give us different viewpoints. If bitcoin is in its dangerous zone, should we keep buying or wait for a correction?

Talking about correction, bitcoin is in need of a strong correction so as to go higher. We are at the point where it is hard to go back. The bull are in charge now and no one dares to stop it. It is reckless to stop the trend/train, right? Moreover, I have been thinking if bitcoin a whole week. It has brought many indicator in the past. Whether we have a chance to witness this habit again. It can be on its dangerous zone for many many days. Such as the RSI indicators had shown that bitcoin had been overbought for numerous weeks.

[stomachgrowls]

Hey guys,
By recent Fear&Greed Index bitcoin is in extreme greed area, usually it's a sign of decline in price or even crash. I've been observing this index for quite some time and find it pretty accurate, of course it doesn't give you the exact day or time but it indicates the sentiment on the market. Do you ever use this index in your trading analysis?

When it comes to index data then honestly i do really check out for these kind of information and its not something new about that index neither the entire market is on greed or in fear

and of course there are indications for that once you had saw on where we are on the recent market situation we are in.Whats next? You would surely think of on securing your position and sell it out

because theres always a tendency for market correction.We cant just have a continous rise in price because there would be a level or goal set where those big players will make a move on selling out their
stashes.

So its better to be prepared rather than letting yourself get caught into the dump but of course i cant blame out people not to be tagged along possible with some FOMO which isnt something unusual.

[jossiel]

I don't use that index but I can say that it's actually saying the real thing that most of the people are greedy because of what we're seeing. Just like you, that's also my observation.

It's an helpful index if you're too conservative with your trades. But as a long time holder, this doesn't affect my decision making.

Checking the fear and greed index, it show 7 factors that are considered to determine the movement of the index; social media, dominance, Volatility, market momentum and volume, surveys and trend. The parameters are with different percentage and they sum-up together to give the direction of movement of the index on greed and fear of traders in the bitcoin market.

It's not an actual thought of the market but it's helpful if you want to know what does the community thinks at the current time.

If the majority starts to show greediness, you can have a contingency plan for your trades. Because when everybody starts to be greedy, that will create fear but on the other hand, bitcoin breached $16k despite what the index showed.

[Nhebu]

Besides that Fear & greed index indicator, I am more using the volume of chart or much better if the Relative Strength Indicator (RSI) also a momentum indicator.
Since using RSI on your chart, it also indicates if the momentum of the market, like if the chart is oversold or overbought. The higher timeframe you will use in your chart, it's much better in RSI, just my 2 cents.

RSI indicates only if the coin is oversold (below 40 lines) or overbought (abobe 40 lines). I use when I think the market will make some reversal. I applied this concept together with macd so that I can notice the momentum of the price. Fear and Greed are the most influential factors that affect the mindset of individual traders. We should fight our emotions so that we can trade based upon what we want to gain results.

[TimeTeller]

I don't use that index but I can say that it's actually saying the real thing that most of the people are greedy because of what we're seeing. Just like you, that's also my observation.

It's an helpful index if you're too conservative with your trades. But as a long time holder, this doesn't affect my decision making.

Checking the fear and greed index, it show 7 factors that are considered to determine the movement of the index; social media, dominance, Volatility, market momentum and volume, surveys and trend. The parameters are with different percentage and they sum-up together to give the direction of movement of the index on greed and fear of traders in the bitcoin market.

It's not an actual thought of the market but it's helpful if you want to know what does the community thinks at the current time.

If the majority starts to show greediness, you can have a contingency plan for your trades. Because when everybody starts to be greedy, that will create fear but on the other hand, bitcoin breached $16k despite what the index showed.

I only look for that index but never really used it in my trading.
If I am trading a specific coin, I look for the development progress and the team's capability to realize their objectives.
However, this index may be vital to some regular traders especially with bitcoin or other top alts.
Sometimes, we don't know where the greed index is coming from as it is a combination of various factors.