Common Mistakes Using the Fear and Greed Index
The Fear and Greed Index is misused as often as it is used well. Treating it as a buy or sell signal,
ignoring the trend and trading the middle are the big mistakes.
1
Treating it as a signal
It is context, not a buy or sell button.
2
Acting on the middle
A reading near 50 means little.
3
Overtrading
Reacting to every wiggle just adds noise.
Source: CFGI
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