Almost all the traders in current trend are utilizing fear and greed index to know about the current market condition. As the crypto market is emotional, the fear and greed index calculation is more important for the traders. In many cases, the traders tend to become emotional and go beyond the boundaries without their knowledge. In order to help them in all the means, the fear and greed index is being calculated. Even though there are tools to carry out this calculation, the traders are supposed to know about the things which are influenced in this calculation. They can make use of the following calculation to understand these factors in detail.
The first and foremost thing that is included in this calculation is the volume. The historical data will be compared with the current market data for making this analysis. In case if the volume is higher, it influences greed and if the volume is lower it resembles fear.
The other important thing that is influenced in this calculation is the social media platforms. It is to be noted that not all the social media platforms are analyzed. But the most reputed and highly used social media platforms like Twitter and Reddit are taken into account for making this calculation. The discussions about bitcoin among the users and their opinions will be taken into account for coming to a better conclusion.
The interest data will be collected from various exchanges from the online world and the comparison will be made to declare the greediness and fear in the market. This information tends to play a major role in this index calculation.
Search volume is one of the most important resources which can help in making this calculation in the right way. By making use of the best search engines like Google and Bing, this calculation will be done. The search results which are related to bitcoin will be taken into account for coming up with the best result. Apart from these, several other related aspects will also be taken into account for this calculation.