Can the Fear and Greed Index Predict a Crash?
The Fear and Greed Index cannot predict a crash, but Extreme Greed flags the conditions in which
crashes become more likely.
1
Not a predictor
Extreme Greed raises risk, it does not time a crash.
2
A warning light
It flags stretched conditions, not the date.
3
Manage risk
Use it to be cautious, not to call tops.
Source: CFGI
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