cfgi Crypto Fear and Greed Index (CFGI)

[Whited35 15285]

Crypto Fear and Greed Index (CFGI)  is used to detect  “overbought” or “oversold” state in the cryptocurrency markets for Bitcoin and other altcoins. If you are a cryptocurrency trader, you have to take care of so many things.  You know, the cryptocurrency market's behavior is generally very emotional so this tool can be very useful for traders if they are in FOMO. This index will be updated once in a day to exhibit values 0-100.

To know more about how this index is determined, visit their official website and to check updated information for this index, check the real-time updated following image. 

 

 

Let's see how you can get benefits from this index.

Extreme fear(CFGI-0):-It indicates investors are too worried to sell their holdings. It can be a buying opportunity for you. 

 

Neutral(CFGI-50):-Neither oversold nor overbought state in the cryptocurrency markets, you might still hold your assets if CFGI exhibiting a value around 50

 

Too greedy(CFGI-100):-It indicates cryptocurrency overbought condition. You might sell your holdings to get benefits. 

 

 

 

 

 

 

Edited February 7, 2021 by Whited35
Link applied.

[kyoukage01 3181]

Does the index includes Bitcoin and the top altcoins, with no separate indexes for each of them? It would have been nice if there are separate entries for each crypto coin, but if it can't be done because there is too much work involved, then that's fine too.

 

I was also going to ask where they get the data and how accurate the index is, but it looks like they have already explained themselves.

Spoiler

Data Sources

We are gathering data from the five following sources. Each data point is valued the same as the day before in order to visualize a meaningful progress in sentiment change of the crypto market.

First of all, the current index is for bitcoin only (we offer separate indices for large alt coins soon), because a big part of it is the volatility of the coin price.

But let’s list all the different factors we’re including in the current index:

Volatility (25 %)

We’re measuring the current volatility and max. drawdowns of bitcoin and compare it with the corresponding average values of the last 30 days and 90 days. We argue that an unusual rise in volatility is a sign of a fearful market.

Market Momentum/Volume (25%)

Also, we’re measuring the current volume and market momentum (again in comparison with the last 30/90 day average values) and put those two values together. Generally, when we see high buying volumes in a positive market on a daily basis, we conclude that the market acts overly greedy / too bullish.

Social Media (15%)

While our reddit sentiment analysis is still not in the live index (we’re still experimenting some market-related key words in the text processing algorithm), our twitter analysis is running. There, we gather and count posts on various hashtags for each coin (publicly, we show only those for Bitcoin) and check how fast and how many interactions they receive in certain time frames). A unusual high interaction rate results in a grown public interest in the coin and in our eyes, corresponds to a greedy market behaviour.

Surveys (15%) currently paused

Together with strawpoll.com (disclaimer: we own this site, too), quite a large public polling platform, we’re conducting weekly crypto polls and ask people how they see the market. Usually, we’re seeing 2,000 - 3,000 votes on each poll, so we do get a picture of the sentiment of a group of crypto investors. We don’t give those results too much attention, but it was quite useful in the beginning of our studies. You can see some recent results here.

Dominance (10%)

The dominance of a coin resembles the market cap share of the whole crypto market. Especially for Bitcoin, we think that a rise in Bitcoin dominance is caused by a fear of (and thus a reduction of) too speculative alt-coin investments, since Bitcoin is becoming more and more the safe haven of crypto. On the other side, when Bitcoin dominance shrinks, people are getting more greedy by investing in more risky alt-coins, dreaming of their chance in next big bull run. Anyhow, analyzing the dominance for a coin other than Bitcoin, you could argue the other way round, since more interest in an alt-coin may conclude a bullish/greedy behaviour for that specific coin.

Trends (10%)

We pull Google Trends data for various Bitcoin related search queries and crunch those numbers, especially the change of search volumes as well as recommended other currently popular searches. For example, if you check Google Trends for "Bitcoin", you can’t get much information from the search volume. But currently, you can see that there is currently a +1,550% rise of the query „bitcoin price manipulation“ in the box of related search queries (as of 05/29/2018). This is clearly a sign of fear in the market, and we use that for our index.

 

source: https://alternative.me/crypto/fear-and-greed-index/

Looking at the chart for the current year, I think at least they got the part right about the March crash and the days during Bitcoin's halving period.

 

Too bad the website doesn't predict the CFGI for tomorrow onwards 😁 . But at least traders can use this to look at previous readings and see if there is a trend going on. I'll bookmark this: it's worth it.

 

P.S. Can you try to add the self-updating image from the website into here? 

It's fixed now. Thanks. 😊

 

Edited February 7, 2021 by kyoukage01

[Whited35 15285]

On 9/9/2020 at 7:19 AM, kyoukage01 said:

Does the index includes Bitcoin and the top altcoins, with no separate indexes for each of them?

I expect the same but unfortunately, Index is collectively for Bitcoin and all BTC sensitive altcoins(In trading pairs 😉)

On 9/9/2020 at 7:19 AM, kyoukage01 said:

oo bad the website doesn't predict the CFGI for tomorrow onwards 😁 . But at least traders can use this to look at previous readings and see if there is a trend going on. I'll bookmark this: it's worth it.

I have tested it for about one month but unbelievably, it is working no matter it is updated once in a day. Clearly, they consider so many factors. Let's analyzed yourself, yesterday it was 41 but now index showing value 38, check the price of BTC and altcoins, prices are slightly dropped 😊.

On 9/9/2020 at 7:19 AM, kyoukage01 said:

P.S. Can you try to add the self-updating image from the website into here?

Oh no luck, I already tried but it is looking like whole texts should be formatted in html code to insert the link but it is not working in that way. If I insert a code for live updating image, it just exhibit a code not the image.

Edited February 9, 2021 by Whited35

[kyoukage01 3181]

On 9/9/2020 at 3:46 PM, Whited35 said:

I expect the same but unfortunately, Index is collectively for Bitcoin and all BTC sensitive altcoins(In trading pairs 😉)

Oh well, beggars can't be choosers. We can still find a use for the index when analyzing altcoin prices. We'll just have to consider a bit of a margin of error.

 

On 9/9/2020 at 3:46 PM, Whited35 said:

Oh no luck, I already tried but it is looking like whole texts should be formatted in html code to insert the link but it is not working in that way. If I insert a code for live updating image, it just exhibit a code not the image.

No dice on my side here as well. I tried inserting the code on my previous post but got the same result as you did, that's why I asked. Thanks for trying. I'll just have to bookmark the website as well.

 

... ... ...

 

I tried getting the data from the previous years, but it looks like 2018 is the earliest date they had, as indicated in the picture below. It would be nice if they had the data back from at least the year during Bitcoin's second halving.

 

Edited February 7, 2021 by kyoukage01

[Whited35 15285]

On 9/10/2020 at 7:54 AM, kyoukage01 said:

I tried getting the data from the previous years, but it looks like 2018 is the earliest date they had, as indicated in the picture below. It would be nice if they had the data back from at least the year during Bitcoin's second halving.

@kyoukage01 Well, yes but no worries. Index is working well now so that we can make a solid trading strategies. Thanks for your chart with marked indicators. Keep tracking on this index you might later realized, it is unbelievably working for your satisfactions😉. 

Edited September 11, 2020 by Whited35

[magd 5231]

This indicator provides false information about the buying and selling process. I have put it in front of a challenge with the Binance platform and many cryptocurrency markets, and the result was that it is different from the rest, not all the time, but it may cause problems in buying and selling if we rely on it.

[ayatoslaw 858]

Usually the data on the index is less accurate, it's different if we look at the chart,

but on the other hand such an index is also very helpful for beginners who don't understand trading charts and want to know market conditions,

[Whited35 15285]

4 hours ago, ayatoslaw said:

Usually the data on the index is less accurate, it's different if we look at the chart,

@ayatoslaw Exactly you are right on that. At least this index is providing the best possible estimation to analyze the market behaviors. Active traders manage to perform all the essential analysis before performing the trades so as you have said, it can be extremely useful for beginners(Experienced players in the crypto trading field can also get benefits from CFGI). 

[kyoukage01 3181]

On 9/11/2020 at 12:58 AM, magd said:

This indicator provides false information about the buying and selling process. I have put it in front of a challenge with the Binance platform and many cryptocurrency markets, and the result was that it is different from the rest, not all the time, but it may cause problems in buying and selling if we rely on it.

The index does not provide information on the "buying and selling process", I think it is more a measurement about crypto users' market behavior. We can use CFGI for looking at people's sentiments and do not have to rely too much on it, just like any other charts or influential people's predictions.

 

As @Whited35 has mentioned:

On 9/9/2020 at 3:46 PM, Whited35 said:

I expect the same but unfortunately, Index is collectively for Bitcoin and all BTC sensitive altcoins(In trading pairs 😉)

In my opinion, the index may be accurate for BTC and the top altcoins (stablecoins not included) and the lower the coin's ranking, the less accurate it becomes. This is the reason why I said that we should consider some margin of error if this chart is to be used on altcoins.

On 9/10/2020 at 10:09 AM, kyoukage01 said:

We can still find a use for the index when analyzing altcoin prices. We'll just have to consider a bit of a margin of error.

The CFGI is more accurate with BTC and perhaps with ETH and becomes less so with other coins. The website explained the basis of their data on the chart, maybe they pay more attention to the top coins since those get the most attention on social media which in turn is one of their criteria for analysis.

 

Taking not-so popular altcoins into account will only blur the chart, not to mention it would be too much work for them. If only there are individual charts for each and every coin so we can get a better view of our favorite coins, but alas, there ain't any.

 

Edited September 12, 2020 by kyoukage01

[Whited35 15285]

30 minutes ago, kyoukage01 said:

In my opinion, the index may be accurate for BTC and the top altcoins (stablecoins not included) and the lower the coin's ranking, the less accurate it becomes. This is the reason why I said that we should consider some margin of error if this chart is to be used on altcoins.

In my experience, index is providing working estimations for majorly Bitcoin and top 20 altcoins.They took at least 24 hours to update the value on index which is not bad as they perform some researchers during that time. At least I check the site twice a day because mostly I do not  find enough time to read all the news updates(which could affect the cryptocurrency markets) in the crypto world. 

[guatazoo 7150]

On 9/7/2020 at 12:07 PM, Whited35 said:

Crypto Fear and Greed Index (CFGI)  is used to detect  “overbought” or “oversold” state in the cryptocurrency markets for Bitcoin and other altcoins. If you are a cryptocurrency trader, you have to take care of so many things.  You know, the cryptocurrency market's behavior is generally very emotional so this tool can be very useful for traders if they are in FOMO. This index will be updated once in a day to exhibit values 0-100.

To know more about how this index is determined and to check updated information for this index, click on the following image.

 

 

Let's see how you can get benefits from this index.

Extreme fear(CFGI-0):-It indicates investors are too worried to sell their holdings. It can be a buying opportunity for you. 

 

Neutral(CFGI-50):-Neither oversold nor overbought state in the cryptocurrency markets, you might still hold your assets if CFGI exhibiting a value around 50

 

Too greedy(CFGI-100):-It indicates cryptocurrency overbought condition. You might sell your holdings to get benefits. 

 

 

 

Before I was try to use this index for trading because the arrow was indicate strong sell, so I was place sell order but my order was going wrong, but within 24 hrs the arrow was still shows strong sell, so I was discover that index is not for live trade but it only shows the market idea. 

[Whited35 15285]

1 minute ago, guatazoo said:

Before I was try to use this index for trading because the arrow was indicate strong sell, so I was place sell order but my order was going wrong, but within 24 hrs the arrow was still shows strong sell, so I was discover that index is not for live trade but it only shows the market idea. 

Hello, I did not get your point clearly. It only works as an estimation not as a real time trading tool.If you are an active trader, I kindly ask you to perform some sort of technical analysis. Be active to follow the charts. This index is updated within 24 hours, get it clearly first. 

[rekter 8129]

On 9/7/2020 at 12:07 PM, Whited35 said:

 

 

Can you link the site where someone could find that to the op? I know i can google it but it just would be helpful if i wanted to link this post for someone.

[Whited35 15285]

3 hours ago, rekter said:

Can you link the site where someone could find that to the op? I know i can google it but it just would be helpful if i wanted to link this post for someone.

@rekter I might quote some lines from my own topic. Have you noticed, I have made it more easier. User has to click on image to land on that page. 

 

On 9/7/2020 at 2:52 PM, Whited35 said:

To know more about how this index is determined and to check updated information for this index, click on the following image.

Try clicking on image attached to my topic above. I also attempted to add the live updating link but code was not properly supported by this forum. Anyway, I updated a link. Check now 😊

Edited September 18, 2020 by Whited35

[rekter 8129]

3 hours ago, Whited35 said:

@rekter I might quote some lines from my own topic. Have you noticed, I have made it more easier. User has to click on image to land on that page. 

Cool, I see that this is index is for all major cryptos grouped together. I guess it is one way to predict overall bull market, but it would be real handy if i could see fear / greed for individual altcoins.

 

By the way if you are looking for more experimental social indicators for cryptos, take a look at the https://app.santiment.net/ if that isn't already on your radar.

[Whited35 15285]

15 minutes ago, rekter said:

By the way if you are looking for more experimental social indicators for cryptos, take a look at the https://app.santiment.net/ if that isn't already on your radar.

@rekter Thanks for this link.I can find this link in my bookmark list but it is clear, I have barely visited this site. Mostly, I prefer to visit https://www.bittsanalytics.com/sentiment-index/ It helps me to detect market behaviors of Bitcoin and so many valuable altcoins. For your mentioned site, it is also looking cool.

 

[Dorjoy12 8962]

On 9/7/2020 at 3:07 PM, Whited35 said:

Crypto Fear and Greed Index (CFGI)  is used to detect  “overbought” or “oversold” state in the cryptocurrency markets for Bitcoin and other altcoins

@Whited35  its means this cfgi will help is in any situation to predicted the price of any currency based on the currency trading volume,supply..so if this indicators show us the right way of price then its Very helpful to us.. Becuase mostly member come in crypto world and start do trading without any knowledge so if they follow your instructions then they can easily have an idea..                     

[Whited35 15285]

56 minutes ago, Dorjoy12 said:

@Whited35  its means this cfgi will help is in any situation to predicted the price of any currency based on the currency trading volume,supply

@Dorjoy12 No ! I kindly ask you to read topic once again 😊. This is an index to predict market behaviors, not the price, volume or any technical things. It exhibits the values between 0-100 and according to that overbought or oversold situation can be predicted. 

[Calvinpriva 17296]

I used tradingview indicators to trade options and sometimes i earned profit and sometimes i lose. But it's not bad for me because trading view and some of it's tools they help me to find the best exchange to earn profit in arbitrage most of the time.

[Whited35 15285]

4 hours ago, Calvinpriva said:

I used tradingview indicators to trade options and sometimes i earned profit and sometimes i lose. But it's not bad for me because trading view and some of it's tools they help me to find the best exchange to earn profit in arbitrage most of the time.

Are you trying to cite https://www.tradingview.com/ideas/indicator/ ? If yes, clearly I am new to this indicator. Is it perfectly working in your case? Let me know something about it. If I find it as useful, I surely consider it as my trading tool 😊

[Mike1515 2977]

This is pretty great news they have been one of th ebest I can imagine, I have not see such a perfect explainer, than from you @Whited35, ou posts are just perfect to read , I never knew there was such , I only knew of investment index measuring tools that are over the internet but the truth is this is a new one and am going to make sure am following you ,I need to read your posts even more.

[kyoukage01 3181]

Let's see if I can read the CFGI chart and explain it correctly.

 

For this example we'll use the chart reading for this month. See the picture below.

Spoiler

 

The second picture is the price of BTC to USD during this month.

Spoiler

 

During the first days of September, the CFGI index fell to 40 (fear) by Sept. 4. This coincided with BTC crashing down to ~$10,000 from nearly ~$12,000. Market analysts at that point were pondering on whether there will be a 'bull' or 'bear' season coming up, and whether or not BTC will crash even further.

https://cointelegraph.com/news/what-now-for-bitcoin-price-september-starts-with-abrupt-btc-sell-off

 

The CFGI was consistent at the 40+ range during those first two weeks, so it would be safe to assume that we are now in 'bear' season. Despite BTC rising slightly to ~$11,000 the highest CFGI index got only to 52 (neutral, Sept. 20) and so there was a chance that BTC prices will fall again, which it did. Had the CFGI index gone to the greed range, we might be able to see BTC go bull and reach the ~$12,000 price range again.

 

The index being just at 40+ can make a trader nervous as well. There is a possibility that it could go even lower, at the 20+ range, indicating that BTC can go even lower than $10,000. This is in line with some crypto users thinking that "the ~$10,000 is the psychological point". It would take skill and experience to trade profitably now at this time.

 

The conclusion? We are definitely in a 'bear' season, and we'll still get stuck at the ~$10,000 range for a few more days at least. Now, with the way the CFGI index is rated now, this would make for a critical decision for crypto users, as anything may happen at this point. The CFGI may begin to go even lower as BTC crashes down. Or the index might indicate greediness and BTC price may rise, creating an opportunity for investors.

 

Of course, you guys should feel free to make your own analysis. What I just wrote is only from a beginner's point of view after all.

 

Edited September 25, 2020 by kyoukage01

[Irungu 4299]

@Mike1515 I also did not know there was such an index, but the truth is really verified in different ways,I have also heard of the currency strength index in forex but in crypto I have never heard of it, but thats a good thing if its an addition to the traders bag.

The first time I have heard of it 

[Mike1515 2977]

Thanks @Irungu That is really important , but truth is so many people will not understand that fear and greed are their greatest enemy in trading and it requires a lot of resilience to kow what to do  and how to handle everything perfectly.

@Calvinpriva I also use a lot of trade view indicators, whether in which ever instrument am trading, |Oil ,metals and even indices All on trade view, its a great place to actually make some good trading friends

[Whited35 15285]

11 hours ago, kyoukage01 said:

The index being just at 40+ can make a trader nervous as well. There is a possibility that it could go even lower, at the 20+ range, indicating that BTC can go even lower than $10,000. This is in line with some crypto users thinking that "the ~$10,000 is the psychological point". It would take skill and experience to trade now at this time.

Nicely explained. In overall, CFGI is working correctly according to your experience, right ? Index is showing value 39 for today and we are seeing more possibilities that market could follow bearish trend for Bitcoin and other major altcoins. Personally, I believe Bitcoin price may not go down to break psychological $10K price mark.