#هل I would like to explain to you how to use the Fear and Greed Index practically in daily trading (like when to buy and when to sell based on the number)
Yes, of course!
Let me clarify for you in an easy and practical way how to use the Fear and Greed Index in buying and selling decisions:
1. When the index is between 0 - 30 (Extreme Fear):
What do you do?
→ This is your opportunity for smart buying! People are scared and prices are usually low.
Practical example:
If the Fear Index is 20, and the markets are crashing, this is the time to start accumulating buy positions quietly, especially for strong currencies.
2. When the index is between 31 - 50 (Normal Fear):
What do you do?
→ Be cautious, but it’s okay to make calculated purchases with technical confirmations (like breaking resistance or rebound signals).
Practical example:
If the Fear Index is 45, wait for confirmations on the chart (like a bullish reversal pattern) and then buy.
3. When the index is between 51 - 69 (Moderate Greed):
What do you do?
→ We have entered the caution zone, prices have likely risen, if you are in a trade, start monitoring for gradual profit-taking.
Practical example:
Like currently, the index is 61, and prices are rising. Enter cautiously or start selling a small portion of the profit as the price rises.
4. When the index is between 70 - 100 (Extreme Greed):
What do you do?
→ Be very careful! Do not open new buy positions, think about gradual exit, the market is likely near a temporary peak.
Practical example:
If the index is 85 for example, and prices are skyrocketing, this is a sign of an impending major correction. Either sell or place a very close stop-loss.