Historically, Extreme Fear zones have appeared near market bottoms rather than tops. Long-term investors often view this phase as a potential accumulation opportunity, while short-term traders remain cautious due to high volatility and unpredictable moves.

However, extreme fear does not guarantee an immediate reversal. Markets can stay fearful longer than expected. Risk management, patience, and position sizing remain critical.

In simple terms:

Fear Index 5 = Panic in the market

Weak hands exit, strong hands observe

Opportunity exists, but only with discipline