How do you read it?
The scale runs 0 to 100 in five zones. The closer to 100, the more stocks are rising, the more positive signals there are and the calmer the market. The closer to zero, the opposite.
62Greed
Extreme fear0-19
Fear20-39
Neutral40-59
Greed60-79
Extreme greed80-100
What is it made of?
Each component becomes a 0 to 100 score, then enters at its weight:
Market breadth (20%)The share of stocks rising today.
Signal consensus (25%)The count of "Trend Continuation" stocks minus "Negative Setup" stocks, relative to all stocks.
Momentum (15%)The average momentum score across stocks.
Trend (15%)The average trend-strength score.
Calm (10%)The average volatility-control score. Calm pushes the number up.
Volume (5%)The average volume-confirmation score.
Market regime (10%)Extended bull 90, bull 85, neutral 50, bear 25, strong bear 10.
ExampleBreadth 60, consensus 55, momentum 58, trend 62, calm 70, volume 50, and a bull market (85). Total: 12 + 13.75 + 8.7 + 9.3 + 7 + 2.5 + 8.5 = 61.75, rounded to 62: "Greed".
What it says, and what it does not
MythExtreme greed means the market will fall.
RealityIt describes the mood now. It can stay high for a while or drop at any time.
MythThe index is about one stock.
RealityIt sums up the whole market. One stock can move completely against it.
Watch outThe index moves fastest during the session, because breadth changes with every new price. Compare readings taken at the same time, for example after each day's close.
See today's reading
The Fear and Greed page shows the current number and its seven components.
Check yourself
1. The index reads 35. Which zone?
The fear zone runs from 20 to 39.
2. Which component carries the most weight?
Signal consensus weighs 25%.
Summary
- A 0 to 100 number summing up market mood, in five zones from extreme fear to extreme greed.
- Built from seven components, led by signal consensus and market breadth.
- It describes the mood now and does not forecast the market.