Steemit Crypto Academy / S4W5 / Homework post Fear and greed index Market emotions Measuring Indicator for @wahyunahrul
Explain why emotional states can affect cryptocurrency price movements?
Human is always a victim of emotion and whatever decisions a person takes, those decisions are made because of emotion.Whatever decisions we make in our life, we make all the decisions through our emotions because whatever our emotions.Our emotions make us make many decisions and we make many right and wrong decisions in life only because of our emotions, we make because of emotions, many decisions also prove to be wrong and after decisions are fine too, sometimes it happens in our life that due to emotion we make many wrong decisions and when we take our decisions in emotions, they prove to be wrong.In life, we should always decide by keeping our emotion under control because when we decide by keeping our emotion under control then most of the decisions are right and if we do any decision which we would not have slept in, if it is wrong. If it is proved, then we do not regret it so much, whatever decisions are taken without emotions, they are taken very wisely and in a very good way.There are many conditions of human emotion like happiness sadness, anger, love, hate, love and others.This is such a condition that describes the emotions of a person and in these emotions the person is very excited and it is any kind of picky condition in which the person is very much lost when he is very happy or when very much If we are worried more, then we speak it with emotional condition and similar condition which is also there in our cryptocurrency market, which we use to make many wrong decisions by getting emotional and due to which we have a lot of loss may have to take.
Similarly crypto market is a market where things are traded and price of which things which point auto keeps going up and down so in this way it waits for price moment on demand and supply If the demand is high, then the price of the coin and token will also be high, if your supply is low and the demand is high, then it means that your coin rate is high and if your supply is high and demand is low then This means that the rate of your coin will be lower.
In the cryptocurrency market, a person is forced into the hands of his emotions and due to his emotions, a person can suffer a lot and there are many people who work with their emotions in the cryptocurrency market and do a lot of damage in it.What happens in the cryptocurrency market is that more one currency is coming down, then many people start russelling it and seeing the same people and other investors, they also start selling, due to which A person is forced to do a lot of damage at the hands of emotions.
In your personal opinion, is the Fear and Greed index a good indicator for the market’s emotional state? If not, try to give reasons and examples of other similar indicators of comparison?
Source
The Fear and Greed Index is a niche of a technical analysis in which we can come and check the emotional condition of all the investors who are there and we can check the emotional condition and from this we can check emotional condition.The price moment in the cryptocurrency market is determined by the demand and supply.Similarly the price moment happens in the market, the life of the investors is created from now on, whenever big investors withdraw their money from these coins and tokens, their automatically comes down to the market because of that. And in the same way an emotional condition is created in the market and many people come in that emotional condition and start selling their coins and a strange market is created which causes loss to many people.Similarly, using the index Greed and Fear Indicator, we can get an idea of the emotions of the investors in the fight and it can be estimated that what is going on in the market condition.There are many conditions which affect the emotions of the investors, including the price moment in the market and the fundamental analysis, apart from the news on social media and there are many other such voices which are available to the market effect and it has a huge impact on which markets moment price moment.And its the wrong signals which are provided by wrong group, they also have a lot of impact on the market trend and apart from this, if we talk about it, because of these things, human beings get emotional and get greedy and make many wrong decisions. due to which he may have to suffer a lot of damage.Similarly, we can use the index to predict a lot of emotion conditions and avoid a lot of losses.
Give your personal opinion on what data should be added to the Fear and Greed indicator?
It always happens in the market that whenever the price of bitcoin increases, then along with of the coins, their price also increases because bitcoin is a main currency, because of this, when it goes up and down, along with it- Along with the other coins, the prices of those coins also go up and down.Whenever the prince buys a coin from many investors in the market and increases its price, then when many other coins see this, they start coming after seeing this thing and so on. the price is that automatic now go away. Similarly, using the fear and greed indicator, we can get an idea that the fear which is there for the investors in the market, which means we can an idea about market.Similarly, the Fear and Greed indicator is oneof the best indicator.we can add 5 to 10% relative price and predict about future market.
Do a technical analysis for 2 to 3 days (maybe more) using the Fear and Greed index and the help of other indicators. Show how you made the decision to enter the cryptocurrency market and explain the results of your trade (screenshot required)
The fear and Greed Index shows that the emotion that you have in your cryptocurrency market to show which condition is going, you show the different condition in the table to the is different. From the numbers we can get an idea that now the market is in condition.
| Market emotional state | Range |
|---|---|
| Extreme fear | 0-20 |
| Fear | 20-40 |
| Neutral | 40-60 |
| Greed | 60-80 |
| Extreme Greed | 80-100 |
When the market is from 0 to number 40, then this indicator means that the market is oversold in it.when this indicator number reaches 60 to 100 it means that the market is greedy and extreme greedy.and market trend show over bought.
| RSI Indicator | Range. |
|---|---|
| Over bought | 0-30 |
| Over Sold | 70-100 |
09 October 2021 the greed and fear index is 76. its means its indicate greed and market conditions is over bought.
22 September 2021 show that the greed and fear index is 21 its means the market is good for buyers. and market is normal.its buying point.
If the relative strength index range is 0 to 30 so its means the market was over bought and its going to bearish trend to bullish trend. the over bought is show the range of 0-30 and over sold range is 70 to 100.
conclusion
In this lecture i learnt a lot of knowledge about fear and greed index indicator. how it work and how we can use this indicator for check emotional condition of the indicators. its very informative lecture for me i am very thankful to professor @wahyunahrul. thanks a lot professor.
ReGards @rasheedkamboh.