最後更新日期：2023年09月08日
Ever felt like you’re riding an emotional rollercoaster with the market, anxious about potential investment losses? It’s a common struggle—one that Growin aims to alleviate. Introducing our two key market indicators: the ‘Fear & Greed Indicator’ and ‘Market Warning Indicator.’ These tools are designed to harmonize your investment choices with your emotional state. Read on to master these essential market metrics from Growin.
🌟 Growin Fear & Greed Indicator 🌟
[ Seize the market’s opportunities by being greedy when others are fearful, capitalizing on reversal signals. ]
Warren Buffett once said, ‘Be fearful when others are greedy, and be greedy when others are fearful.’ During extreme market emotions, if one can discern the direction of market sentiment, there’s an opportunity to go against the crowd and generate returns. The Growin team has developed an exclusive Fear & Greed Indicator, which provides more accurate signals of extreme sentiment reversals. Backed by quantitative backtesting data, this indicator allows investors to accurately assess the current market sentiment.
# Growin Fear & Greed Indicator Rating
Upon entering the Fear Greed Indicator page, users can clearly see the fear and greed score for the current market from the chart. The page also provides the historical scores for the last five instances on the right side.
The Growin Fear & Greed Indicator offers a spectrum of five emotional states to guide your investment decisions: Extreme Fear, Fear, Neutral, Greed, and Extreme Greed. Here’s what each range signifies:
- Extreme Fear (-5 to -4 points) : The market is currently experiencing extreme fear, which could potentially lead to rapid rebound opportunities.
- Fearful (-3 to -2 points) : The market may be at a relatively low level, searching for stock price support areas and waiting for rebound signals.
- Neutral (-1 to 1) : The market is relatively stable at this time, and further evaluation is needed
- Greedy (2 to 3 points) : The market may be at a relatively high level, and there may be a need to be aware of the risks.
- Extremely greedy (4 to 5 points) : The market could be overheated; be vigilant as stock prices might experience a rapid pullback.
The Growin team analyzed what happens after extreme sentiment shifts in the market. We found that within five days of such a change, there’s a 65% chance of significant market movement. For example, when the sentiment shifts from ‘Extreme Fear,’ (-5 score) there’s almost a 66% chance the market will go up, with an average gain close to 4%.
To sum it up, the Growin Fear & Greed Indicator is a key tool for shaping your investment approach. When the market’s getting fearful, playing it safe with cash or low-risk assets might be your best bet. On the other hand, when the crowd of investors gets greedy in the air, it’s a sign to reassess your risks and perhaps cut back on your investments. And don’t forget: extreme emotions often signal prime opportunities for counter trend trades, letting you capitalize on market swings.
🌟Growin Market Warning Signals🌟
[ Enhance Investment Decisions, Adapt to Market Changes ]
In the past, investors had to invest considerable time and effort in analyzing a vast array of data, including economic statistics, market news, and capital flows, to gain insights into market trends. However, Growin has introduced the “Market Warning Indicator,” which combines economic data, market sentiment, capital flows, and options. This significantly simplifies the process of understanding market conditions and adjusting stock position exposure, making it more accessible and efficient.
# Growin Market Warning Indicator 🚥
- 🟩 Stable (Green Light) : All indicators point towards a favorable investment environment. Economic data remains stable, market sentiment is positive, and capital flows are healthy. Investors can seize the opportunity to invest and anticipate favorable returns.
- 🟨 Notice (Yellow Light) : Remain cautious. There are risks and uncertainties in the market. Economic data might be volatile, market sentiment might be mixed, and capital flows may change.It’s advisable for investors to conduct thorough research and analysis before making prudent investment decisions.
- 🟥 Warning (Red Light) : The investment environment is confronting substantial risks and challenges. Economic data is unfavorable, and market sentiment is also notably volatile. Investors are advised to exercise caution, focus on protecting capital, and rebalance portfolios to explore safer investment alternatives.
Moreover, Growin also provides historical backtesting result, allowing users to compare the signals with market performance and freely select the desired observation period. In the example below, when selecting a five-year interval, you can see the comparative chart between the market index and the Market Warning Indicator. Notably, during the period from February to July, it’s evident that when the Warning Indicator turns red, the market’s performance also appears relatively weak.
Users can delve deeper by exploring the comprehensive historical data provided, which includes the number of days, returns, declines, and events related to each signal phase. This feature allows for a dual understanding of both major past financial events and the corresponding signal conditions, enriching your grasp of market trends during these key moments. For example, the data shows that in the last ten stable signal periods, seven resulted in positive returns, offering valuable insights into market behavior.
In summary, investors should regularly monitor Growin’s Market Warning Indicator and adjust their investment and risk-management strategies accordingly. While these signals can’t guarantee perfect predictions of future market trends, they serve as important alerts that help investors recognize potential risks and make appropriate adjustments to their positions.
Want to learn more about Growin Stock Mining?
Click here to watch the complete guide on how to use the Growin Service : https://blog.growin.tv/stockmining-instruction/