Fear-Greed Thermometer

Fear-Greed Thermometer

This indicator measures market sentiment between fear and greed by combining three key factors: volatility, average volume, and percentage price change. Each factor is normalized and averaged to produce an index ranging from 0 to 100 that reflects the overall level of market fear or greed.

How to use:
Index above 50: Indicates greed dominance. The market tends to be more optimistic, signaling potential bullish conditions or overbought levels.

Index below 50: Indicates fear dominance. The market is more cautious or pessimistic, pointing to potential bearish conditions or oversold levels.

Neutral line (50): Acts as a reference for transitions between fear and greed phases.

Features:
Dynamic background: The chart background changes color according to sentiment — green for greed, red for fear — making it easy to visually gauge the index.

Customizable: Adjust the calculation periods for volatility, volume, and price change to fit your analysis style.

Tips:
Use alongside other technical tools to confirm entry and exit points.

Watch for divergences between the index and price to anticipate possible reversals.

Monitoring extreme levels can help identify market turning points.

This indicator is not a buy or sell recommendation but an additional tool to help understand the overall market sentiment.