The Fear and Greed Index was developed by CNNMoney to measure the two of investors' main emotions, which can drive the stock market, by evaluation the 7 indicators: stock price momentum, stock price strength, stock price breadth, put and call options, junk bond demand, market volatility and save haven demand.
- Stock Price Momentum: The S&P 500 ( ) versus its 125-day moving average
- Stock Price Strength: The number of stocks hitting 52-week highs and lows on the New York Stock Exchange
- Stock Price Breadth: The volume of shares trading in stocks on the rise versus those declining.
- Put and Call Options: The put/call ratio, which compares the trading volume of bullish call options relative to the trading volume of bearish put options
- Junk Bond Demand: The spread between yields on investment grade bonds and junk bonds
- Market Volatility: The VIX ( ), which measures volatility
- Safe Haven Demand: The difference in returns for stocks versus Treasuries
Similarly the Crypto Fear and Greed Index was developed to "analyze emotions and sentiments from different sources and crunch them into one simple number: The Fear & Greed Index for Bitcoin and other large cryptocurrencies". At this time the platform only offers the index for Bitcoin, which is a good representation of the overall crypto market emotional state.
The data is gathered from different sources to include the following factors: 25% Volatility, 25% Market Momentum/Volume, 15% Social Media, 15% Surveys, 10% Dominance and 10% Google Trends.