The index measures multiple inputs: market momentum, stock price breadth, put/call ratios, junk bond demand, and safe-haven demand. Collectively, they show whether investors are fearful or greedy.
Warren Buffett's rule: "Be fearful when others are greedy, and greedy when others are fearful." Extreme fear historically marks buying opportunities for long-term investors. Extreme greed often precedes short-term corrections.
The index is a contrarian tool. It does not predict where the market goes tomorrow, but it gives context: are you buying into panic or buying into euphoria? Those are very different risk profiles.
Track the crypto version on StockifyX's Fear & Greed Index page, updated every 5 minutes. Combine it with your stock screener results to get a fuller picture of current market conditions.