The Fear and Greed Index boils market sentiment down to a single number from 0 (extreme fear) to 100 (extreme greed). It's a contrarian tool: it's most useful precisely when everyone feels most certain.
It blends things like volatility, momentum, volume, social sentiment and dominance into one gauge of the crowd's mood. You don't need the recipe — you need to know that it captures how greedy or fearful the market is right now.
Markets tend to top when everyone is greedy and bottom when everyone is terrified. Historically, single-digit "extreme fear" readings have clustered near major bottoms, while sustained "extreme greed" has often preceded pullbacks. The middle of the range tells you little; the extremes are the signal.
Treat it as a contrarian nudge, not a trigger. Extreme fear says "don't panic-sell with the crowd — look for value." Extreme greed says "temper the euphoria — tighten risk." Combine it with the chart, never on its own.
See the idea in action — see the current reading and how past extremes lined up with tops and bottoms.
Open Fear & GreedCreate free accountIs extreme fear a buy signal?
Historically, extreme fear has often lined up with good long-term entries — but it's a contrarian nudge, not a precise timing trigger. Confirm with price.
How is the index calculated?
It blends volatility, momentum, volume, social sentiment and market dominance into a single 0-100 score.
Can it stay extreme for a while?
Yes — in strong trends greed or fear can persist. That's why it's best used at extremes and alongside other signals.