Gauge Sentiment With Stocks Fear & Greed
A simple way to see if the stock market is acting on fear or chasing greed — so you’re not the last one buying euphoria or selling panic.
Stocks Fear & Greed Index
What is a Fear & Greed Index?
A Fear & Greed index measures overall market sentiment by combining several inputs — things like volatility, momentum, breadth, and options activity — into a single score. Low readings point to fear and risk-off behaviour; high readings point to greed and risk-on behaviour.
It’s not a signal to buy or sell on its own, but it gives you context: Are traders scared, cautious, or euphoric right now?
Why Fear & Greed Matters
- Avoid emotional traps. Extreme fear often lines up with forced selling. Extreme greed often lines up with late FOMO.
- Frame your risk. In greedy markets, we size more carefully and protect profits. In fearful markets, we’re patient and selective.
- Support your read of price action. When sentiment and price agree, conviction increases. When they diverge, we pay extra attention.
How ACE Members Use It
Inside ACE Trading Club, the Fear & Greed read is never used alone. It’s layered on top of:
- Our daily levels and watchlist for the major indices and leading stocks.
- Intraday price action and volume behaviour.
- Karl’s risk rules — staying small enough to add and protecting downside first.
The index helps members answer one key question: “Is this market in a mood to reward risk, or punish it?” When you understand that, your trade selection, sizing and expectations become much clearer.