Fear and Greed As a Contrarian Indicator
A contrarian indicator flags when the crowd is one-sided. The Fear and Greed Index is the clearest
example.
1
Crowd wrong at extremes
That is the whole premise.
2
Fade the ends
Buy Extreme Fear, lighten Extreme Greed.
3
A prompt, not a trigger
Confirm against your own plan.
Source: CFGI
Markets