Enter the percentages of Market Volatility, Stock Price Strength, Stock Price Momentum, Junk Bond Demand, Market Momentum, Safe Haven Demand, and Volatility Index into the calculator to determine the Fear and Greed Index.

Fear And Greed Index Formula

The following formula is used to calculate the Fear and Greed Index. 

FGI = (MV + SP + SPM + JH + MM + BDI + VIX) / 7

Variables:

  • FGI is the Fear and Greed Index
  • MV is the Market Volatility (%)
  • SP is the Stock Price Strength (%)
  • SPM is the Stock Price Momentum (%)
  • JH is the Junk Bond Demand (%)
  • MM is the Market Momentum (%)
  • BDI is the Safe Haven Demand (%)
  • VIX is the Volatility Index (%)

To calculate the Fear and Greed Index, add the percentages of Market Volatility, Stock Price Strength, Stock Price Momentum, Junk Bond Demand, Market Momentum, Safe Haven Demand, and Volatility Index. Then, divide the total by 7 to get the average. This average represents the Fear and Greed Index, which indicates the current sentiment of the market.

What is a Fear And Greed Index?

The Fear and Greed Index is a market sentiment tool used by investors to gauge the market’s emotional state – fear or greed. Developed by CNNMoney, it measures seven indicators including stock price momentum, stock price strength, stock price breadth, put and call options, junk bond demand, market volatility, and safe haven demand. The index oscillates between 0 and 100, with 0 representing extreme fear, 100 indicating extreme greed, and 50 being a neutral position. This helps investors understand whether the market is currently under- or over-bought, thus aiding in investment decisions.

How to Calculate Fear And Greed Index?

The following steps outline how to calculate the Fear and Greed Index (FGI) using the given formula:

  1. First, gather the values for each variable: MV, SP, SPM, JH, MM, BDI, and VIX.
  2. Next, add up the values of all the variables: MV + SP + SPM + JH + MM + BDI + VIX.
  3. Then, divide the sum by 7 to calculate the Fear and Greed Index: FGI = (MV + SP + SPM + JH + MM + BDI + VIX) / 7.
  4. Finally, calculate the Fear and Greed Index using the gathered values and the formula.
  5. After inserting the values and calculating the result, check your answer with the calculator or tool provided.

Example Problem:

Use the following values as an example problem to test your knowledge:

MV: 10%

SP: 20%

SPM: 15%

JH: 5%

MM: 12%

BDI: 8%

VIX: 7%