Fear and Greed Index - Crypto Academy / S4W5 - Homework Post for @wahyunahrul
1). Explain why emotional states can affect
The man has two qualities that was a fear or greed cryptocurrency price movements?
when a man trade on cryptocurrencies it take some risk of being it was going to loss but in another side the man has greedy nature also it things that the trade have being up and he was got a great profits. The fear and Greedness of a man always effect to the cryptocurrency price movement when the man has the greedy nature it does not sold the coins whenever the coin price had gone in deep loss because of his geedy nature he thinks that the price of the coin was upper and when the coin price was already in a profit rather it also not sold the coin beacuse he think the rate of the coin is more increase it effects the price moments of the cryptocirrency. The crypto market behaviour is very emotional. People are going to be greedy when the cryptocurrency market going up. The people sells their coins in inirrational reaction of seeing red numbers. With our Fear and Greed Index, the people was from fyour own emotional overreations. There are to control over them.
Highlights
•the man has gave the emotional information in the cryptocurrency market.
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Future of bitcoin has been returned are not associated with emotional factors.
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The Bitcoin's trading volume and return volatility are signifing associated with emotional factors thus that was change the price moment.
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Emotions affect the total return variation process of cryptocurrencies and the stability of the coin.
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The greedness are largest effectable suitable condition on the fluctuation on the cryptocurrency.
The Extreme fear can be a shows that the investors are too worried. That they could be a buying opportunity to them.
When the Investors are getting trade too greedy, that means the market is due for a correction.and the new performance ranking.
2). In your personal opinion, is the Fear and Greed Index a good indicator of the market's emotional state? if not give reasons and examples of other similar indicators for comparison.
The geed and fear was both taking it makes a fear and greed index it produced by CNN Money to measure two of the primary and the obseve emotions that telling about how much investors are willing to pay for stocks or not. The greed and fear index is measured on a weekly daily, monthly, and yearly basis In theory, the index can be used to gauge whether the stock market is fairly priced. The greed and fear indexis that This is based on the logic that was the excessive fear tranding s to drive down share prices, and too much greed trands to have the opposite effect.
And no the greed and fear index is not good for the cryptocurrency tranding beacuse of the fear and greed it can not maintain the market and the cryptocurrency rates .
The man qualitues Fear and greed are like bothsides of a coin.that can change all the time and it gave always a grat loss to them.
We cant saperate both from each othes because this is like a half part of a movie.
They all have the power to simultaneously influence and that have to the desicion making power of immature and average and the some weak traders at the same time.
The experienced and master traders are it was the knowers of the trading they are able to control and convert thesec weaknesses into strength or a power to others trades.
The master traders have already gave a grat and ferfect defined a set of rules which they have always follow and make before making any investment decisions to take a more profit to his decision.They know what they can potentially lose or win in any outcome of their trading desicions. So neither greed or fear makes any difference to them because they have mastered them to take the perfect master decision because of their experience and trading skills.
3). Give your personal opinion on what data should be added to the Fear and Greed Indicator.
Firstly we added the mentility in our mind then we uplod any data at the time of trading. beacuse it only responsinle our mind to give you a great profits and a huge loss. We added theprice momentum; stock price strength; stock price breadth; put and call options; junk bond demand; market volatility; and safe-haven demand.that they make a more profit and a less loss the greed and fear are the both part of like coin that they alway remane same.
4). Do a technical analysis for 2 to 3 days (maybe more) using the Feer 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).
source
The result of the trade gone be always like a profit some of the human nature of greedness and the fearness take some time to stable the market when the market gone flutuate this make some loss but and of the day i close my trade of today in being as always profit.
Conclusion:-
Emotion of people affect the cryptocurrency market. Two most important emotion are fear and greed. From this lecture we learn many things about cryptocurrency market. And the fear and gredd index we all learnt in this that the man minds always make a loss or profit by fear and greed the 60%of man are greedy to make a more money and they deflect the traders market and change the coin rates by it own doing .
Thank you professor for your lecture through your lecture we learnt many new terms related to cryptocurrency market.
Cc:-
@wahyunahrul