The CFGI (Fear and Greed Index) is an indicator used to gauge market sentiment for any cryptocurrency.
On this page we calculate the fear and greed index for 41 tokens taking into account many factors.
When the index is in strong green (extreme greed) the market is too bullish and the token is overbought and it may be a good time to sell. On the other hand, when it is strong red (extreme fear), the market is too pessimistic and the asset is oversold, which may be a good time to buy.
The values of the indicator are:
0 - 24: EXTREME FEAR
25 - 39: FEAR
40 - 59: NEUTRAL
60 - 74: GREED
75 - 100: EXTREME GREED
Traditional indicators give us overbought or oversold signals based mainly on price values, but this is only a single variable.
We know that in reality market sentiment is governed by more factors than just price, so we need a ,multifactorial analysis of those factors, which is precisely what the CFGI does.
With the Crypto Fear and Greed Index you have a more accurate high probability of knowing when a token is overbought or oversold than a traditional indicator.