Fear/Greed Zone Reversals [UAlgo]The "Fear/Greed Zone Reversals " indicator is a custom technical analysis tool designed for TradingView, aimed at identifying potential reversal points in the market based on sentiment zones characterized by fear and greed. This indicator utilizes a combination of moving averages, standard deviations, and price action to detect when the market transitions from extreme fear to greed or vice versa. By identifying these critical turning points, traders can gain insights into potential buy or sell opportunities.
🔶 Key Features
Customizable Moving Averages: The indicator allows users to select from various types of moving averages (SMA, EMA, WMA, VWMA, HMA) for both fear and greed zone calculations, enabling flexible adaptation to different trading strategies.
Fear Zone Settings:
Fear Source: Select the price data point (e.g., close, high, low) used for Fear Zone calculations.
Fear Period: This defines the lookback window for calculating the Fear Zone deviation.
Fear Stdev Period: This sets the period used to calculate the standard deviation of the Fear Zone deviation.
Greed Zone Settings:
Greed Source: Select the price data point (e.g., close, high, low) used for Greed Zone calculations.
Greed Period: This defines the lookback window for calculating the Greed Zone deviation.
Greed Stdev Period: This sets the period used to calculate the standard deviation of the Greed Zone deviation.
Alert Conditions: Integrated alert conditions notify traders in real-time when a reversal in the fear or greed zone is detected, allowing for timely decision-making.
🔶 Interpreting Indicator
Greed Zone: A Greed Zone is highlighted when the price deviates significantly above the chosen moving average. This suggests market sentiment might be leaning towards greed, potentially indicating a selling opportunity.
Fear Zone Reversal: A Fear Zone is highlighted when the price deviates significantly below the chosen moving average of the selected price source. This suggests market sentiment might be leaning towards fear, potentially indicating a buying opportunity. When the indicator identifies a reversal from a fear zone, it suggests that the market is transitioning from a period of intense selling pressure to a more neutral or potentially bullish state. This is typically indicated by an upward arrow (▲) on the chart, signaling a potential buy opportunity. The fear zone is characterized by high price volatility and overselling, making it a crucial point for traders to consider entering the market.
Greed Zone Reversal: Conversely, a Greed Zone is highlighted when the price deviates significantly above the chosen moving average. This suggests market sentiment might be leaning towards greed, potentially indicating a selling opportunity. When the indicator detects a reversal from a greed zone, it indicates that the market may be moving from an overbought condition back to a more neutral or bearish state. This is marked by a downward arrow (▼) on the chart, suggesting a potential sell opportunity. The greed zone is often associated with overconfidence and high buying activity, which can precede a market correction.
🔶 Why offer multiple moving average types?
By providing various moving average types (SMA, EMA, WMA, VWMA, HMA) , the indicator offers greater flexibility for traders to tailor the indicator to their specific trading strategies and market preferences. Different moving averages react differently to price data and can produce varying signals.
SMA (Simple Moving Average): Provides an equal weighting to all data points within the specified period.
EMA (Exponential Moving Average): Gives more weight to recent data points, making it more responsive to price changes.
WMA (Weighted Moving Average): Allows for custom weighting of data points, providing more flexibility in the calculation.
VWMA (Volume Weighted Moving Average): Considers both price and volume data, giving more weight to periods with higher trading volume.
HMA (Hull Moving Average): A combination of weighted moving averages designed to reduce lag and provide a smoother curve.
Offering multiple options allows traders to:
Experiment: Traders can try different moving averages to see which one produces the most accurate signals for their specific market.
Adapt to different market conditions: Different market conditions may require different moving average types. For example, a fast-moving market might benefit from a faster moving average like an EMA, while a slower-moving market might be better suited to a slower moving average like an SMA.
Personalize: Traders can choose the moving average that best aligns with their personal trading style and risk tolerance.
In essence, providing a variety of moving average types empowers traders to create a more personalized and effective trading experience.
🔶 Disclaimer
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Fear
YinYang Fear and Greed Index (FGI)Overview:
YinYang Fear and Greed Index is used for seeing how people are feeling towards the current price. It works similar to an RSI, but fluctuates differently. Essentially you want to be Greedy when the Index displays Fear and Fearful when it displays Greed. Our Indicator displays a Green Circle (Greed Signal) on the YinYang Fear and Greed Index when there is a large amount of Greed at this price point. It displays a Red Circle (Fear Signal) when there is a large amount of Fear. The Fear and Greed Signals can happen at any Fear and Greed Index but generally they correlate with the Index level. The Fear and Greed Signals are much more important at dictating a swing in momentum than the actual Index itself. The Index is more of a guide and is useful for seeing when the Index level crosses the Ma (the yellow line) as you can see a shift in momentum. However for large swings in momentum, the Fear and Greed Signals should be used. Do NOT Ignore these signals, they are quite powerful at predicting momentum swings.
Tutorial:
As you can see, the Fear and Greed Index looks somewhat similar to an RSI, but it has the ability to gain drastic momentum when there are strong changes in Fear and Greed.
When it comes to identifying buy/sell locations you generally want to ensure 2 things:
For a buy, the Fear and Greed Index (FGI) is less than 30.
For a sell, the FGI is greater than 70.
A signal has occurred. For buy that is the red circle and for sell that is the green circle.
The reason we generally want to ensure these 2 rules is to ensure you have the highest chance of being right with the lowest risk of being wrong. The way you want to use this indicator is; Be Fearful when others are Greedy and Greedy when others are Fearful.
There will be times when a fear or greed signal appears when the index is between 30-70. When these occur, they are still generally strong signal locations that represent a high chance of momentum in the direction they signal, however they face a higher risk of being wrong and therefore shouldn’t be used on its own to make a trade.
In the photo above we can see that the FGI’s color changed from Red to Orange in the candle after the Fear Signal. This happened because there was high price movement right after it (which is normal) and caused the Fear level to drop.
The color the FGI displays is based not off the FGI but by the STATE it is currently in. When the color is Green it is in a state of HIGH GREED, when the color is Red it is in a state of HIGH FEAR. When the color is Teal it is in a state of SLIGHT GREED, when the color is Orange it is in a state of SLIGHT FEAR. These colors hold true for the Information Tables as well.
As we can also see from the example above, it is 100% possible to have a state of HIGH GREED when the FGI is low. For instance look at the Fear (BUY) signals circled. Right before the Fear Signals happened, it was in a state of HIGH GREED (Green). The opposite is also true with Fear. We can have a high state of Fear when the FGI is high. However, please do remember, the lowest risk and best time to make trades is still:
FGI is higher than 70 and there is a Greed Signal = SELL
FGI is lower than 30 and there is a Fear Signal = BUY
You may notice there are sometimes occurrences that we call ‘Oddballs’. These oddballs are quite rare but they do happen and when they do they’re generally in clusters (close together). These Oddballs are when a Greed Signal occurs when the FGI is very low or when a Fear Signal occurs when the FGI is very high. Basically, they are occurring in the opposite location that they are supposed to. These may not seem like they matter but they matter a lot. As you can see based on where the blue vertical lines are, the price moved in the direction the signal identified shortly after the signal.
You may be wondering, are Oddball’s stronger price influencers than the regular signal? The issue with Oddballs is they sometimes CAN BE. But generally they aren’t. They generally do signal price movement will occur in the direction they are influencing, but generally not as much movement as if it occurred properly (Fear signal under 30 or Greed signal above 70).
The takeaway from Oddballs is to acknowledge their existence and potentially use them as markers for smaller purchases or DCA locations. We don’t recommend treating them as a legitimate purchase signal as they generally are weaker and less predictable, but nevertheless don’t dismiss them.
Our Information Tables are there to show you the FGI on 6 different Time Frames at the same time. This can be very useful for knowing how the other Time Frames are fairing while you are trading without needing to constantly change the Time Frame you are on.
For example, you see a Fear Signal on the 1 Day Time Frame, you then swap to the 15 minute Time Frame to find your entry location. Well, once you’re locked into that trade, you’ll likely be fixated on the 15 minute Time Frame. There’s a chance while you’re still waiting for your exit that levels and states of the FGI could change on higher Time Frames. This could drastically influence when and where your exit on the lower Time Frame should be.
This concludes our Tutorial on how to use YinYang Fear and Greed Index (FGI). However, continue reading for a description and better understanding of the Settings available to you for customization within this Indicator.
Settings:
1. Information Tables:
1.1. Show Information Tables:
Our Information Tables display 6 different Time Frames (resolutions) so that you can see the current level of Fear and Greed (FGI) that is prevalent on each Time Frame. There are 4 different states the FGI can be in:
Fear (Red)
Minor Fear (Orange)
Greed (Green)
Minor Greed (Teal)
The color of each Time Frame Cell (on Oscillator and in the table) is based on the following:
Red: Red represents that it is currently in a state of Fear. When it is in a state of fear it means traders are being overly bearish and selling when they likely shouldn’t. While it is in a state of Fear, there is a high chance of BULLISH price movement occurring. Remember, Be Fearful when others are Greedy and Greedy when others are Fearful.
Orange: Orange represents that it is currently in a state of Minor Fear. Minor Fear means that the FGI is less than 50, but it’s not currently in a state of Fear or Greed. While it is in this state, there is a better chance for BULLISH price action than there is bearish but it's nowhere near as likely as when in a state of Fear.
Green: Green represents that it is currently in a state of Greed. When it is in a state of Greed, it means traders are being overly bullish and buying when they shouldn’t. While it is in a state of Greed, there is a high chance of BEARISH price movement occurring.
Teal: Teal represents that it is currently in a state of Minor Greed. Minor Greed means that the FGI is greater than 50, but it’s not currently in a state of Fear or Greed. While it is in this state, there is a better chance for BEARISH price actions than there is bullish; but it’s nowhere near as likely as when its in a state of Greed.
2. Res1 / Res2/ Res3 / Res4 / Res5 / Res6:
These represent the different resolutions (Time Frames) being used in your information tables and can be modified to display whatever resolution works best for your trading style. By default they are:
Res1: Current Timeframe
Res2: 15 Minute
Res3: 1 Hour
Res4: 4 Hour
Res5: 1 Day
Res6: 1 Week
Backup Res (not changeable): 5 Minute (this is only used if your Current Timeframe in Res1 is a duplicate of one of the other resolutions)
Our Fear and Greed Index can be very useful for understanding how people are feeling in the market and when large price swings will occur. Remember, Be Greedy when others are Fearful and Fearful when others are Greedy!
If you have any Questions or Concerns, don’t hesitate to contact us.
HAPPY TRADING!
Rich Robin Index, The Crypto Fear & Greed Index with RSI Trend The Relative Strength Index (RSI) is a technical indicator based on price movements that is used to determine whether a particular asset is overbought or oversold. It measures the ratio of rising to falling prices over a certain period of time.
The Fear & Greed Index, on the other hand, is a composite index that tracks the sentiment of the crypto market. It is based on seven indicators, each of which measures a different aspect of market behavior. These indicators are: Safe Haven Demand, Stock Price Breadth, Market Momentum, Stock Price Strength, Put and Call Options, Junk Bond Demand, and Market Volatility.
The combination of the RSI and the Fear & Greed Index can provide valuable insights for crypto traders. The RSI can help identify overbought and oversold conditions, while the Fear & Greed Index can give an overall sense of the sentiment in the market. Together, they can provide a more complete picture of the market conditions. For example, if the RSI is indicating that an asset is overbought, but the Fear & Greed Index is showing that the market is still in a state of fear, it may be a good time to sell. On the other hand, if the RSI is indicating that an asset is oversold, but the Fear & Greed Index is showing that the market is in a state of greed, it may be a good time to buy.
Overall, the combination of the RSI and the Fear & Greed Index can provide useful information for traders to make more informed decisions, by giving a sense of the market conditions, and providing a way to identify overbought and oversold conditions.
I11L - Reversal Trading Ideas by Larry ConnorsThis is my own Twist on Larry Connors Simple Tradingideas.
It Combines the RSI, Averaging In and the Lowest Bars in a Single System.
The current Configuration is designed for the Daily Timeframe.
Feel free to play with the Parameters and keep in mind that Larry Intended to buy fear and sell the greed!
The Rules are the following:
---Buy---
Buy, if the lowest Bar of your Configuration has been hit (default is set to 7).
---Average Down--
Buy, if the lowest Bar of your Configuration * Your open trades has been hit AND only if the buyin is atleast 1% cheaper.
---Close---
Close, if the RSI closes above a certain level (default is set to 70).
---TP---
There is no TP
---SL---
There is no SL, so be cautions of your tail Risk!
Stochastic Vix Fix SVIX (Tartigradia)The Stochastic Vix or Stochastic VixFix (SVIX), just like the Williams VixFix, is a realized volatility indicator, and can help in finding market bottoms as well as tops without requiring bollinger bands or any other construct, as the SVIX is bounded between 0-100 which allows for an objective thresholding regardless of the past.
Mathematically, SVIX is the complement of the original Stochastic Oscillator, with such a simple transform reproducing Williams' VixFix and the VIX index signals of high volatility and hence of market bottoms quite accurately but within a bounded 0-100 range. Having a predefined range allows to find markets bottoms without needing to compare to past prices using a bollinger band (Chris Moody on TradingView) nor a moving average (Hesta 2015), as a simple threshold condition (by default above 80) is sufficient to reliably signal interesting entry points at bottoming prices.
Having a predefined range allows to find markets bottoms without needing to compare to past prices using a bollinger band (Chris Moody on TradingView) nor a moving average (Hesta 2015), as a simple threshold condition (by default above 80) is sufficient to reliably signal interesting entry points at bottoming prices.
Indeed, as Williams describes in his paper, markets tend to find the lowest prices during times of highest volatility, which usually accompany times of highest fear.
Although the VixFix originally only indicates market bottoms, the Stochastic VixFix can also indicate good times to exit, when SVIX is at a low value (default: below 20), but just like the original VixFix and VIX index, exit signals are as usual much less reliable than long entries signals, because: 1) mature markets such as SP500 tend to increase over the long term, 2) when market fall, retail traders panic and hence volatility skyrockets and bottom is more reliably signalled, but at market tops, no one is panicking, price action only loses momentum because of liquidity drying up.
Compared to Hesta 2015 strategy of using a moving average over Williams' VixFix to generate entry signals, SVIX generates much fewer false positives during ranging markets, which drastically reduce Hesta 2015 strategy profitability as this incurs quite a lot of losses.
This indicator goes further than the original SVIX, by restoring the smoothed D and second-level smoothed D2 oscillators from the original Stochastic Oscillator, and use a 14-period ZLMA instead of the original 20-period SMA, to generate smoother yet responsive signals compared to using just the raw SVIX (by default, this is disabled, as the original raw SVIX is used to produce more entry signals).
Usage:
Set the timescale to daily or weekly preferably, to reduce false positives.
When the background is highlighted in green or when the highlight disappears, it is usually a good time to enter a long position.
Red background highlighting can be enabled to signal good exit zones, but these generate a lot of false positives.
To further reduce false positives, the SVIX_MA can be used to generate signals instead of the raw SVIX.
For more information on Williams' Vix Fix, which is a strategy published under public domain:
The VIX Fix, Larry Williams, Active Trader magazine, December 2007, web.archive.org
Fixing the VIX: An Indicator to Beat Fear, Amber Hestla-Barnhart, Journal of Technical Analysis, March 13, 2015, ssrn.com
For more information on the Stochastic Vix Fix (SVIX), published under Creative Commons:
Replicating the CBOE VIX using a synthetic volatility index trading algorithm, Dayne Cary and Gary van Vuuren, Cogent Economics & Finance, Volume 7, 2019, Issue 1, doi.org
Note: strangely, in the paper, the authors failed to mention that the SVIX is the complement of the original Stochastic Oscillator, instead reproducing just the original equation. The correct equation for the SVIX was retroengineered by comparing charts they published in the paper with charts generated by this pinescript indicator.
For a more complete indicator, see:
Crypto Fear & Greed IndexCrypto Fear & Greed Index
Crypto Fear & Greed Index is a metric to gauge sentiment levels in the crypto market.
The index starts from 0 to 100, with 0 meaning “Extreme Fear” (a potential bottom signal as investors are overly worried), and 100 meaning “Extreme Greed” (a potential top signal as investors are overly bullish).
Why Measure Fear and Greed?
In most markets, participants tend to be emotional with their behavior. Market participants often get overly greedy and FOMO when prices are on a euphoric rise, whilst they also tend to be overly fearful when prices are down and irrationally selling their positions at a loss.
Using the Crypto Fear and Greed Index
The Crypto Fear and Greed Index is commonly used to time entry into the market. As such, the Index is seen as less of an investment research tool and more of a market-timing tool. As stated by Warren Buffet, “Be fearful when others are greedy, and greedy when others are fearful.”
Calculation of the Crypto Fear and Greed Index
The Crypto Fear and Greed Index is based on three different factors – each factor is gauged from 0 to 100 and equally weighted to generate the index value.
The three factors are:
1. Stable coin flows
If there is a market sell-off and investors are expecting the value of their crypto investment to decline, they may rotate into stable coins as a safe haven.
As such, we look at the general trend of stable coins volume and activity to measure if the market is greedy or fearful.
2. Market Momentum
The performance of the top 18 coins relative to its 30-day average. A greater relative performance indicates greed and vice versa.
3. Top 18 Coins Price Strength
The number of coins of the top 18 coins hitting 90-days highs relative to those hitting 90-days lows. A greater number of coins hitting 90-days highs versus 90-days lows indicates greed and vice versa.
Levels Of Fear [AstrideUnicorn]"Buy at the level of maximum fear when everyone is selling." - says a well-known among traders wisdom. If an asset's price declines significantly from the most recent highest value or established range, traders start to worry. The higher the drawdown gets, the more fear market participants experience. During a sell-off, a feedback loop arises, in which the escalating fear and price decline strengthen each other.
The Levels Of Fear indicator helps analyze price declines and find the best times to buy an asset after a sell-off. In finance, volatility is a term that describes the degree of variation of an asset price over time. It is usually denoted by the letter σ (sigma) and estimated as the standard deviation of the asset price or price returns. The Levels Of Fear indicator helps measure the current price decline in the standard deviation units. It plots seven levels at distances of 1, 2, 3, 4, 5, 6, and 7 standard deviations (sigmas) below the base price (the recent highest price or upper bound of the established range). In what follows, we will refer to these levels as levels of fear.
HOW TO USE
When the price in its decline reaches a certain level of fear, it means that it has declined from its recent highest value by a corresponding number of standard deviations. The indicator helps traders see the minimum levels to which the price may fall and estimate the potential depth of the current decline based on the cause of the actual market shock. Five-seven sigma declines are relatively rare events and correspond to significant market shocks. In the lack of information, 5-7 sigma levels are good for buying an asset. Because when the price falls that deep, it corresponds to the maximum fear and pessimism in the market when most people are selling. In such situations, contrarian logic becomes the best decision.
SETTINGS
Window: the averaging window or period of the indicator. The algorithm uses this parameter to calculate the base level and standard deviations. Higher values are better for measuring deeper and longer declines.
Levels Stability: the parameter used in the decline detection. The higher the value is, the more stable and long the fear levels are, but at the same time, the lag increases. The lower it is, the faster the indicator responds to the price changes, but the fear levels are recalculated more frequently and are less stable. This parameter is mostly for fine-tuning. It does not change the overall picture much.
Mode: the parameter that defines the style for the labels. In the Cool Guys Mode , the indicator displays the labels as emojis. In the Serious Guys Mode , labels show the distance from the base level measured in standard deviation units or sigmas.
Fear and Greed Intraday IndexThis script uses all of the sub-components of my 'Fear and Greed Index' which can be used on intraday timeframes. Most of the components of this script are based on the popular fear and greed index website and are briefly described in the code comments.
Several of the subcomponents have been recalculated to use RSIs instead of being compared to moving averages, which means as opposed to being used a contrarian timing indicator as the daily timeframe Fear and Greed Index is, this indicator now may potentially be used more like a momentum indicator.
It's up to you!
Enjoy!
Fear and Greed Index CandlesticksThis colours the candlesticks based on my 'Fear and Greed Index'.
All calculations are explained in the code.
The index is mainly based upon the components of the popular fear and greed index website. I've annotated the components in the code for you to look at.
If you're interested, you can replace the final variable 'Total' (within the 'barcolor' function at the very end) with any of the final outputs of the subcomponents to see the results of that single part.
Red = Greed
Green = Fear
Enjoy!
Fear and Greed IndexI couldn't find one based on the original, so I made my own, it's not quite identical, but it does the job.
Red = greed
Green = fear
I updated a lot of the subcomponents and fixed a bug. I've reduced the smoothing to 1, it was previously 5 if you prefer smoother signals. Also added a McClellan oscillator.
I've commented out the plotting of individual sub-components, just uncomment them to see what they do. Some look like pretty useful indicators on their own.
Enjoy!
FEAR & GREED INDICATORBINANCE:BTCUSDTPERP
Hello
The crypto index, which is currently only for Bitcoin, captures bearish and bullish trends by gauging investor sentiment for the coin. As the name suggests, the market trend is identified based on two emotions – fear and greed.
This configurations are set for 1D BTC charts
This is simple script, based on cheatcountry script
Enjoy ;)
Fear N GreedOverview
The goal of this script was to apply the concept of Herd Mentality. While one voice may seem unique, when you combine all the voices together they average out and show an overall emotion of the herd. We should be able to apply this concept to indicators, giving us the Fear and Greed of the markets.
How to Use
Buy when there is fear and sell when there is greed. Pay attention to changes in direction of the indicator. If the data is fearful and the data is starting to change direction, it signals that it's probably a good time to buy because greed is slowly starting to enter the market. You can use this indicator in any time frame, just check the past data to determine how useful it will be for that specific period.
Options
Smoothing : This will smooth the data. Try to stay around 5-15. High values will cause the indicator to lag
Line Width : Visually changes the width of the data line
Top Band +- : Moves the top band up or down
Bot Band +- : Moves the bottom band up or down
Mid Band Width : Adjusts the width of the middle region
Fear Alert Level >= : Sets when the alert will start to trigger
Greed Alert Level >= : Sets when the alert will start to trigger
Indicators
There are multiple indicators used in this script. I used the Stochastic RSI to measure strength in the market. This combines well with the MACD indicator by giving you really good entry and exit points. There is an indicator combining money flow and rate of return to give a basic emotion of the data. I also included breadth and momentum and several others to help gauge the direction of the market. I then normalize all of the indicators between 0-100 so that I can get an overall average, smooth the noise, and ultimately plot the data.
Bands
While making this script I noticed flowing regions of the data that would act as support and resistance so I did my best to calculate where they might fall. I essentially take the high and low data points from various lengths averaging them and then apply a smoothing filter to the band. I then noticed that between the bands there was a significant region that acted as a middle resistance and support. I decided the best way to make this region was to take the average high + average low of the data and divide it by 2 to get the center region. The reason I did this instead of just using the mid point of the bands was because when the data stays in a similar region it creates resistance, so it's more accurate to base the mid point on a shorter time frame rather than the overall bands of higher timeframes.
Alerts
Alerts are set up based on the change in data direction. If you set Fear as the alert for Fear Alert >= it will wait for a change in direction if the data is greater than or equal to the selected Fear level.
When setting alerts, make sure to use Once Per Bar Close as the option. There are 3 alert types: Fear Alert, Greed Alert, and Fear and Greed Alert. Fear and Greed Alert will combine the alerts into one message so that it's usable for free accounts. Fear Alert and Greed Alert will only message for those specific positions.
(VIP) Contrarian Reversal Zones Script is showing potential reversal zones on chart, based on calculations of High/Low of selected period, smoothing it with selected type of Moving Average and applying Standard Deviation. Preferred to be used for contrarian traders. Another alternative usage would be to lock profit from open positions as this is very often early warning before reversal ahead.
If you're interested with access to indicator, please contact me via DM (private message) on Tradingview.com ;)
VIX MTF MomentumSweet little momentum gadget to track the VIX Index.
What is the VIX?
The CBOE S&P 500 Volatility Index (VIX) is known as the 'Fear Index' which can measure how worried traders are that the S&P 500 might suddenly drop within the next 30 days.
When the VIX starts moving higher, it is telling you that traders are getting nervous. When the VIX starts moving lower, it is telling you that traders are gaining confidence.
VIX calculation?
The Chicago Board of Options Exchange Market Volatility Index (VIX) is a measure of implied volatility (Of the S&P 500 securities options), based on the prices of a basket of S&P 500 Index options with 30 days to expiration.
How to use:
If VIX Momentum is above 0 (RED) traders are getting nervous.
If VIX Momentum is below 0 (GREEN) traders are gaining confidence.
Follow to get updates and new scripts: www.tradingview.com
Simplified Crypto Fear & Greed DisplayA more simplified view of a Fear & Greed index.
This script has been made public because it uses Trading Psychology - Fear & Greed Index by DGT as the basis/inspiration for it.
I've re-imagined the visuals in order to display F&G data differently to the more traditional versions of the indicator floating around, as well as adapting it's calculations and reference assets for use with Crypto markets.
It's aim is to show the current status / mindset of market participants at a quick glance.
When there is a lot of fear in the market it is usually a good time to look for buying opportunities.
On the flip side you can use it to spot selling opportunities when there is too much greed / FOMO in the markets.
This indicator has the option for Traditional and Crypto markets.
The Traditional option uses the tickers VIX and GOLD as part of it's calculations, where as Crypto uses BVOL24H and BTC.D in order to base it's decisions off of more relevant data.
There are also 10 levels of smoothing so play around with that to get the desired result. Depending on the asset you are looking at, smoothing of 1 or 2 may work much better than 5+
Have a play around, customize it, use it and let me know what you think.
Trading Psychology - Fear & Greed Index by DGTPsychology of a Market Cycle - Where are we in the cycle?
Before proceeding with the question "where", let's first have a quick look at "What is market psychology?"
Market psychology is the idea that the movements of a market reflect the emotional state of its participants. It is one of the main topics of behavioral economics - an interdisciplinary field that investigates the various factors that precede economic decisions. Many believe that emotions are the main driving force behind the shifts of financial markets and that the overall fluctuating investor sentiment is what creates the so-called psychological market cycles - which is also dynamic.
Stages of Investor Emotions:
* Optimism – A positive outlook encourages us about the future, leading us to buy stocks.
* Excitement – Having seen some of our initial ideas work, we begin considering what our market success could allow us to accomplish.
* Thrill – At this point we investors cannot believe our success and begin to comment on how smart we are.
* Euphoria – This marks the point of maximum financial risk. Having seen every decision result in quick, easy profits, we begin to ignore risk and expect every trade to become profitable.
* Anxiety – For the first time the market moves against us. Having never stared at unrealized losses, we tell ourselves we are long-term investors and that all our ideas will eventually work.
* Denial – When markets have not rebounded, yet we do not know how to respond, we begin denying either that we made poor choices or that things will not improve shortly.
* Fear – The market realities become confusing. We believe the stocks we own will never move in our favor.
* Desperation – Not knowing how to act, we grasp at any idea that will allow us to get back to breakeven.
* Panic – Having exhausted all ideas, we are at a loss for what to do next.
* Capitulation – Deciding our portfolio will never increase again, we sell all our stocks to avoid any future losses.
* Despondency – After exiting the markets we do not want to buy stocks ever again. This often marks the moment of greatest financial opportunity.
* Depression – Not knowing how we could be so foolish, we are left trying to understand our actions.
* Hope – Eventually we return to the realization that markets move in cycles, and we begin looking for our next opportunity.
* Relief – Having bought a stock that turned profitable, we renew our faith that there is a future in investing.
It's hard to predict with certainty where we exactly are in the market cycle, we can only make an educated guess as to the rough stage based on data available. And here comes the study "Trading Psychology - Fear & Greed Index"
Factors taken into account in this study include:
1-Price Momentum : Price Divergence/Convergence versus its Slow Moving Average
2-Strenght : Rate of Return (RoR) also called Return on Investment (ROI) is a performance measure used to evaluate the efficiency of an investment, net gain or loss of an investment over a specified time period, the rate of change in price movement over a period of time to help investors determine the strength
3-Money Flow : Chaikin Money Flow (CMF) is a technical analysis indicator used to measure Money Flow Volume over a set period of time. CMF can be used as a way to further quantify changes in buying and selling pressure and can help to anticipate future changes and therefore trading opportunities. CMF calculations is based on Accumulation/Distribution
4-Market Volatility : CBOE Volatility Index (VIX), the Volatility Index, or VIX, is a real-time market index that represents the market's expectation of 30-day forward-looking volatility. Derived from the price inputs of the S&P 500 index options, it provides a measure of market risk and investors' sentiments. It is also known by other names like "Fear Gauge" or "Fear Index." Investors, research analysts and portfolio managers look to VIX values as a way to measure market risk, fear and stress before they take investment decisions
5-Safe Haven Demand : in this study GOLD demand is assumed
What to look for :
*Fear and Greed Index as explained above,
*Divergencies
Tool tip of the label displayed provides details of references
Conclusion:
As investors, we always get caught up in the day to day price movements, and lose sight of the bigger picture. The biggest crashes happen not when investors are cautious and fearful, it's when they're euphoric and expecting financial instruments to continue going higher. So as we continue investing, don’t forget to stop and ask yourself, where in the chart do you think we are right now? The Market Psychology Cycle shines light on how emotions evolve, fear and greed index can come in handy, provided that it is not the only tool used to make investment decisions. It is easy to look back at market cycles and recognize how the overall psychology changed. Analyzing previous data makes it obvious what actions and decisions would have been the most profitable. However, it is much harder to understand how the market is changing as it goes - and even harder to predict what comes next. Many investors use technical analysis (TA) to attempt to anticipate where the market is likely to go. Investors are advised to keep tabs on fear for potential buying the dips opportunities and view periods of greed as a potential indicator that financial instruments might be overvalued.
Warren Buffett's quote, buy when others are fearful, and sell when others are greedy
Trading success is all about following your trading strategy and the indicators should fit within your trading strategy, and not to be traded upon solely
Disclaimer : The script is for informational and educational purposes only. Use of the script does not constitute professional and/or financial advice. You alone have the sole responsibility of evaluating the script output and risks associated with the use of the script. In exchange for using the script, you agree not to hold dgtrd TradingView user liable for any possible claim for damages arising from any decision you make based on use of the script
Fearzone & Greedzone Levels - Contrarian & Breakout (Expo)"Be fearful when others are greedy, and greedy when others are fearful" - Warren Buffett. Fearzone & Greedzone Levels - Contrarian & Breakout (Expo) is a contrarian and breakout indicator that gives us an indication when fear and greed begins to take over in the market. Traders should be prepared for increased volatility and good trading opportunities.
This indicator can both be used to identify potential reversal points and be used to identify breakouts from previous Fear and Greed Levels.
The Fearzone and Greedzone can be visualized with candlesticks or with circles depending on what you prefer.
Alert conditions are added.
HOW TO USE
1. Use the indicator to identify when investors are fearful and greedy.
2. Use the indicator to identify potential reversal points.
3. Use the indicator to identify potential breakouts.
INDICATOR IN ACTION
4 hour chart
4 hour chart
I hope you find this indicator useful , and please comment or contact me if you like the script or have any questions/suggestions for future improvements. Thanks!
I will continually work on this indicator, so please share your experience and feedback as it will enable me to make even better improvements. Thanks to everyone that has already contacted me regarding my scripts. Your feedback is valuable for future developments!
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Disclaimer
Copyright by Zeiierman.
The information contained in my scripts/indicators/ideas does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, or individual’s trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My scripts/indicators/ideas are only for educational purposes!
Fearzone (Expo) - Contrarian Indicator"Be fearful when others are greedy, and greedy when others are fearful" - Warren Buffett. Fearzone is a contrarian indicator that gives us an indication when fear begins to take over in the market. Traders should be prepared for increased volatility and good trading opportunities.
The Fearzone is visualized with red candlesticks below the price.
This version of the FearZone indicator is slightly different from the one ©kruskakli has published.
HOW TO USE
1. Use the indicator to identify when investors are fearful.
2. Use the indicator to identify potential reversal points.
INDICATOR IN ACTION
1 hour chart
5 min chart
I hope you find this indicator useful , and please comment or contact me if you like the script or have any questions/suggestions for future improvements. Thanks!
I will continually work on this indicator, so please share your experience and feedback as it will enable me to make even better improvements. Thanks to everyone that has already contacted me regarding my scripts. Your feedback is valuable for future developments!
-----------------
Disclaimer
Copyright by Zeiierman.
The information contained in my scripts/indicators/ideas does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, or individual’s trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My scripts/indicators/ideas are only for educational purposes!
Fear And Greed IndicatorThe Fear And Greed Indicator is a very popular indicator on the Bloomberg platform and since I didn't have actual source code to work with, this is a very close approximation of that indicator. Let me know if you spot any discrepancies with the original and I will do my best to fix them.
For buy and sell signals it is pretty straightforward. Just buy when the green (greed) is in control and sell when the fear (red) is in control
This was a special request so let me know if you want to see more scripts from me or if you want something custom!
Bull and Bear Fear Expert by Walter Downs StrategyBull and Bear Fear Expert by Walter Downs Strategy
Fear & Greed Index-BuschiThis is an attempt to mimic the CNN Money "Fear & Greed Index": money.cnn.com
It's far from perfect, because the exact numbers can be a bit far off. Still, the highs and lows are quite on target. Alas, CNN does not give away too much information on how the index is calculated.
Feedback is most welcome.
Inverted Yield Curve with VIX Fear IndexUS 2 year and US 10 year comparison, inverted yield curve with VIX. I use this on a weekly chart with 2 moving averages, the 40 week (ma200 daily) and the 520 week (10 year median).
The bottom histogram is the VIX and the plot is the yield curve. When the VIX is above a certain level (you can set it in settings) and the ýield curve is close to or at inversion the background goes red.
The last seven recessions were preceded by an inverted yield curve. Here I combined the two main fear indexes, the VIX and the run for safe US treasuries (Inverted Yield Curve).
This is preset to the 2 year and 10 year US bond, weekly, and the normal VIX ticker but you can set it to whatever you like.
Published with source code for anyone to modify. Please comment below if you do so! This is the second in a series of indicators I intend to publish as a package of economic recoverty/recession symptom indicators.
Follow me for updates, next one up is commodities with dr Copper and oil!
