How Fear & Greed Impact Your Trades: Sentiment Analysis for Smart Traders

The stock market isn’t always moved by logic – emotions play a huge role. Fear and greed are the two forces that drive price movement. Understanding them can completely change how you trade.

Welcome to the world of Sentiment Analysis – where psychology meets price action.

🌟 What is Sentiment Analysis?

It’s the process of studying market emotions (like panic or euphoria) to forecast possible market moves. While technical and fundamental analysis focus on price and business, sentiment analysis looks at trader behavior.

🔫 Examples of Sentiment in Action:

Extreme Fear = market bottoms (people panic sell at lows)

Extreme Greed = market tops (everyone is bullish, no sellers left)

Sudden News Impact = emotions spike faster than logic

Overtrading after 1 win/loss = personal emotion > setup

🌎 Tools to Track Market Sentiment:

Fear & Greed Index (for Crypto & US Market)

India VIX (Volatility Index)

FII/DII Data

Put Call Ratio (PCR)

Social Media & News Flow

🤔 How to Use Sentiment in Your Strategy:

Avoid trades during peak fear or extreme greed

Watch sentiment to enter against the crowd at turning points

Pair sentiment with chart patterns for accuracy

🔎 Psychology = 50% of Trading

Even with the best strategy, poor emotional control will cause failure. Sentiment analysis helps you understand others, and master yourself.

📅 Learn Live in Our Classes

We teach how to read sentiment zones on charts and link it with institutional behavior, creating powerful entry-exit logic.