Read the Fear and Greed Index in 3 Steps with AI

Step 1: Learn to identify market sentiment turning points.

When the Fear and Greed Index drops below 20, the market is already extremely scared, which is actually the golden window to buy in. Conversely, when the index surpasses 80, it indicates that the market sentiment is extremely hot, and it's time to consider taking profits before getting trapped. This is the core logic of trading—when others are fearful, I want to be greedy; when others are greedy, I need to stay alert.

Step 2: Extend the time horizon.

Relying on just one day's data can be misleading. Comparing the curves over 30 days and 60 days can reveal the true trend. Short-term extreme fluctuations are often just market emotion releases; only long-term indicator changes reflect the real market shift.

Step 3: Use data to drive your decisions.

Don't trade based on feelings, and don't be swayed by others' emotions. The Fear and Greed Index is like a market thermometer. Learning to interpret it allows you to stay rational when others panic and to exit timely during market booms. This is the way to achieve stable profits.