Tron Fan Club | Market Fear and Greed Index - By @solexybaba |10% payout to the community account

Image edited on Canva

Hello to everyone here in this great community known as the Tron Fan Club I do hope we all are in great spirit. I welcome you all to yet another weekend, and I hope you all have a lovely week ahead. Today based on the current trend we have been experiencing in the crypto market, I will be discussing with us all an important topic which I have titled Fear and Greed Index of the crypto market. this will explain to some extent how the emotions of traders affect the crypto market. so I beckon on us all to sit tight and relax as I begin to explain the said topic regarding the lesson of today.

HOW THE EMOTIONAL STATE OF TRADERS CAN HAVE AN EFFECT ON CRYPTO MARKET PRICE TRENDS

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Just the way we react to things when we are happy or sad is, in the same manner, we traders react to the crypto market. our emotions have a great deal of strength that affect our state of mind especially when trading. but before I continue explaining more, I need to, first of all, clear the air by telling us all what emotion is.

The word emotion can be an individual's internal state of being an involuntary physiological response to either a thing or a particular situation regarding the physical state. so just as an individual's emotions can respond to anything else they can also affect the cryptocurrency market price trends and that lead to what we know as the Fear and Greed Index in cryptocurrency trading.

The trend we normally see in cryptocurrency trading is highly influenced by the level of demand and supply of various cryptocurrency tokens. in the cryptocurrency market trading, we get to see certain numbers of tokens that are supplied in seconds, and also on the other hand we get to see certain numbers of demands transactions that are exhibited or processed, ready to purchase the supplied cryptocurrencies. so if there are many supplies then of course there should be much demand for these currencies. so with that having been said, and in such situations, it can then be integrated into expression, afterward, we get to notice how quick traders are performing trade with such index, trying to make a profit in the market as soon as possible with fear of the market not going contrary to the order they have placed already.

Now, with the recent happenings in the crypto market, we get to see that the price of the crypto market has headed to the bearish level and this attests to the fact that traders that are in the market are supplying cryptocurrencies which we all know a placing a sell order and then individuals trace out of their investment, this is as a result of the currencies losing their value and then for this situation not to affect investors then tend to give it out as supplies in other not to lose a great deal of money that has been used for such investment. and that behavior typically portrays what Fear Index is all about in the crypto world.

The crypto market is also affected when individuals known as investors on seeing a token showing great potential and signs of making profits, tend to run after that token in other to take advantage of it to make profits with such token, let us take an example, a token has been launched and with investors seeing that other investors have purchased this token and also seeing that the token is increasing in price, potentials and value, they tend to dive into such token in other to purchase and make profits out of it, and with that scenario, the crypto market is affected and thus investors tend to dump the previous tokens they are equally holding on to to get this new token that has been showing massive profits potential and with that, shows the attitude of what we called Greed Index regarding the investors letting off those currencies they have been holding for long in other to go after the new potential token.

DO YOU THINK THE FEAR AND GREED INDEX INDICATOR IS A NICE INDICATOR OF THE MARKET EMOTIONAL STATE?

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This is an important question I wish to answer to. the fear and greed indicator reveals to us the point at which investors are buying a specific token alongside the state of mind they reflect on purchasing that particular token. so my opinion is that the fear and greed index indicator is an excellent indicator as though it shows us the point concerning the state of mind or emotions regarding the token upon investing in the market before going into a trade.

The Fear and Greed Index indicator, assist traders to a great extent, as though it helps in eradicating trade phobia in individuals that are about to place a market order in the crypto market thus they will be notified of the current trends of the said token they want to invest in, as though they get to see how far the current token had moved with other investors too. it is in no doubt, a good indicator to work with as though it relates to investors, the intervals of trade alongside the market emotional condition of investors that are already in the market.

The Fear and Greed Index indicator highlight to us, the condition of investors in the market in the basic date that has been provided in the below tabular form.

Interval	Emotional Condition
0 to 20	Extreme Fear
20 to 40	Fear
40 to 60	Neutral
60 to 80	Greed
80 to 100	Extreme Greed

As seen in the above table, the data helps investors to know the emotions of investors regarding the crypto market trends. and thus this will help to know the state of mind of a trader as well as an asset that has been traded by other investors and also how far it has gone with them. so it is a wonderful indicator to work with.

DOES THIS INDICATOR HAVE A DISADVANTAGE?

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Well, everything about this indicator is great, but I figured out that it only works for the topmost currency which we all know as the Bitcoin. currently, the fear and greed index indicator only works for investors that are trading only bitcoin tokens. it would have been nice if the fear and greed index indicator works so well with all cryptocurrency tokens, with that cryptocurrency traders will be safe the more and take certain precautions when investing in either supplying cryptocurrency tokens or making a demand for them.

CONCLUSION

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As traders of the Bitcoin cryptocurrency, it is recommended that we make use of the Fear and Greed Index indicator before executing a particular trade, a though this shows us the level of the market and how far it has accelerated with other investors. this helps investors to a great deal know when to enter the cryptocurrency market and also the trends that the market is exhibiting, it shows how ell traders are either making profits or losses in the market thereby giving a trader a solid decision on whether to proceed with the market trend or take a break from it until it retraces towards the trader's favor.

Thank you all for taking your time to go through my publication regarding the market Fear and Greed Index Indicator. I hope it has been beneficial to you.