TraderJane

Swing Trader’s Playbook: Turning Dips into Dollars. Insights, Not Advice. DYOR. I have no courses (nothing) to sell, no Telegram group. I will not DM you first.

[TraderJane @TraderJane8]

$BTC/$IBIT: Using The Fear & Greed Index For Growth & Income

This index is an important tool, but it is just one tool in a toolbox. The Fear & Greed Index is useful, but it's easy to misuse — especially because the "Extreme Fear" zone is quite wide and can last for a long time.

From the chart below taken at time of posting:

➡️ Extreme Fear (roughly below ~25) is not a short, sharp signal. It can stay in that zone for weeks or even months during bear markets or deep corrections.
This means if you treat every reading below 25 the same way, you’ll either...

Deploy too early/aggressively, or become desensitized and ignore it when it’s actually important.

Breaking News! I just got a text from Captain Obvious. He said "No one should go all-in just because the index hits Extreme Fear. That’s a common mistake." 😂

My Plan

1. Treat It as a Filter, Not a Trigger

The Fear & Greed Index should confirm other signals rather than being the main reason you deploy capital.

🔸 Best practice: I'll be using it together with my other two signals (Weekly RSI + 20-Week SMA).
🔸 Only get aggressive when multiple signals align.

2. Create Tiers of Aggression

Instead of treating all Extreme Fear readings the same, break it into levels, see screenshot below. This chart prevents me from treating a mild "Fear" reading the same as a deep capitulation (sub-15).

3. Best Ways to Actually Use It

Here are the most effective ways people (including experienced investors) use the index:

🔸 Confluence Tool: Only increase position size when Fear & Greed is low and your other indicators (RSI + 20W SMA) are also flashing buy signals.
🔸 Sentiment Confirmation: Use it to validate whether a price dip is being accompanied by real fear (good) or just normal volatility (less interesting).
🔸 Avoid Buying in Greed: One of its best uses is telling you when not to buy. When the index is above 70–75, be very cautious with new capital.
🔸 Psychological Check: It can help override your own emotions. If the index is at 12 but you feel scared to buy, it can give you objective permission to be more aggressive.

From my research, I found the 'optimal' way to use the Fear & Greed Index is as a sentiment filter and position sizing tool, not as a precise timing indicator. I combine it with technicals (my 'home-made thermometer') and adjust my deployment size based on how extreme the reading is.

🌟 My Thermometer Rules

📌 My thermometer combines three signals:

I. Crypto Fear & Greed Index
II. Weekly RSI
III. 20-Week Simple Moving Average.

All three should be considered together when making deployment decisions for both my Growth ($IBIT buys) & Income* (sell $IBIT Cash-Secured Puts) strategy.

*See screenshots below.

📌 Fear & Greed Index Tiered Approach (This determines how aggressive I should be):

→ Extreme Fear (0–15): This is the strongest signal. Deploy more aggressively when this reading aligns with Weekly RSI ≤ 40 and/or price touching or below the 20-Week SMA. This is the highest conviction zone for larger deployments.

→ Fear (16–25): Still a good buying environment, but slightly less aggressive than sub-15 readings. Deploy at a moderate size when supported by the other two signals.

→ Neutral to Mild Fear (26–40): Only deploy small amounts and only when both Weekly RSI and the 20-Week SMA are also supportive. Avoid large deployments in this range.

→ Above 40 (Neutral to Greed): Low conviction zone. Deploy very small amounts at best, or sit on cash. When the index moves above 60–70, strongly consider reducing or pausing new deployments.

→ General Rule: The lower the Fear & Greed reading, the more aggressive I can be only if it is supported by the Weekly RSI and/or 20-Week SMA. Never go all-in based on the Fear & Greed Index alone.

#Bitcoin #BTC #fearandgreedindex NFA. DYOR.

[TraderJane @TraderJane8]

@PekeenaMorena Thanks!

[TraderJane @TraderJane8]

$BTC/$IBIT: Using The Fear & Greed Index For Growth & Income

This index is an important tool, but it is just one tool in a toolbox. The Fear & Greed Index is useful, but it's easy to misuse — especially because the "Extreme Fear" zone is quite wide and can last for a long time.

From the chart below taken at time of posting:

➡️ Extreme Fear (roughly below ~25) is not a short, sharp signal. It can stay in that zone for weeks or even months during bear markets or deep corrections.
This means if you treat every reading below 25 the same way, you’ll either...

Deploy too early/aggressively, or become desensitized and ignore it when it’s actually important.

Breaking News! I just got a text from Captain Obvious. He said "No one should go all-in just because the index hits Extreme Fear. That’s a common mistake." 😂

My Plan

1. Treat It as a Filter, Not a Trigger

The Fear & Greed Index should confirm other signals rather than being the main reason you deploy capital.

🔸 Best practice: I'll be using it together with my other two signals (Weekly RSI + 20-Week SMA).
🔸 Only get aggressive when multiple signals align.

2. Create Tiers of Aggression

Instead of treating all Extreme Fear readings the same, break it into levels, see screenshot below. This chart prevents me from treating a mild "Fear" reading the same as a deep capitulation (sub-15).

3. Best Ways to Actually Use It

Here are the most effective ways people (including experienced investors) use the index:

🔸 Confluence Tool: Only increase position size when Fear & Greed is low and your other indicators (RSI + 20W SMA) are also flashing buy signals.
🔸 Sentiment Confirmation: Use it to validate whether a price dip is being accompanied by real fear (good) or just normal volatility (less interesting).
🔸 Avoid Buying in Greed: One of its best uses is telling you when not to buy. When the index is above 70–75, be very cautious with new capital.
🔸 Psychological Check: It can help override your own emotions. If the index is at 12 but you feel scared to buy, it can give you objective permission to be more aggressive.

From my research, I found the 'optimal' way to use the Fear & Greed Index is as a sentiment filter and position sizing tool, not as a precise timing indicator. I combine it with technicals (my 'home-made thermometer') and adjust my deployment size based on how extreme the reading is.

🌟 My Thermometer Rules

📌 My thermometer combines three signals:

I. Crypto Fear & Greed Index
II. Weekly RSI
III. 20-Week Simple Moving Average.

All three should be considered together when making deployment decisions for both my Growth ($IBIT buys) & Income* (sell $IBIT Cash-Secured Puts) strategy.

*See screenshots below.

📌 Fear & Greed Index Tiered Approach (This determines how aggressive I should be):

→ Extreme Fear (0–15): This is the strongest signal. Deploy more aggressively when this reading aligns with Weekly RSI ≤ 40 and/or price touching or below the 20-Week SMA. This is the highest conviction zone for larger deployments.

→ Fear (16–25): Still a good buying environment, but slightly less aggressive than sub-15 readings. Deploy at a moderate size when supported by the other two signals.

→ Neutral to Mild Fear (26–40): Only deploy small amounts and only when both Weekly RSI and the 20-Week SMA are also supportive. Avoid large deployments in this range.

→ Above 40 (Neutral to Greed): Low conviction zone. Deploy very small amounts at best, or sit on cash. When the index moves above 60–70, strongly consider reducing or pausing new deployments.

→ General Rule: The lower the Fear & Greed reading, the more aggressive I can be only if it is supported by the Weekly RSI and/or 20-Week SMA. Never go all-in based on the Fear & Greed Index alone.

#Bitcoin #BTC #fearandgreedindex NFA. DYOR.

[TraderJane @TraderJane8]

@nicrypto Yep, he lost. Big.

[Ron Shillman @shillman1]

@Nostre_damus

[TraderJane @TraderJane8]

@21WIRE My guess... after November midterms, boots on the ground. I sincerely hope I am wrong.

[TraderJane @TraderJane8]

@Ms_Iranian Boo hoo hoo

[TraderJane @TraderJane8]

@SJosephBurns No, no, no! I will not have a losing trade. Ever.

[Arch Public @tryarchpublic]

Top 10 Public Bitcoin Treasury Companies

1. @Strategy - 845,256
2. @twentyone - 43,514
3. @Metaplanet - 40,177
4.@MARA - 35,303
5. Bitcoin Standard Treasury Co - 30,021
6. @Bullish - 24,300
7. @Strive - 19,032
8.@SpaceX - 18,712
9. @coinbase - 16,492
10. @RiotPlatforms - 15,680

[TraderJane @TraderJane8]

@TheIranianzg3z What a shock! I thought 40th time is the charm.

[Coin Bureau @coinbureau]

How likely is this scenario? 👀

[TraderJane @TraderJane8]

@RT_com Monsanto is NOT going to like this, they'll have convinced Trump's USA that this farm is very, very close to having multiple nukes!

[TraderJane @TraderJane8]

@DougAMacgregor What? I thought the 40th time "we are very, very close to a deal" is the charm, no?

[Andrew @AP_Abacus]

SpaceX holds more Bitcoin on their balance sheet than Coinbase.

[TraderJane @TraderJane8]

@DougAMacgregor @911NewsBreaks Looks like 🌮 to make Mexico the 52nd or is it the 53rd state now 😆

[TraderJane @TraderJane8]

@MacroScope17 How high do you think BTC will climb

[TraderJane @TraderJane8]

@SJosephBurns Hey, what about fake it till you make it? 😆

[David Senra @davidsenra]

.@danawhite says one of the keys to longevity is to block out all negativity:

“There's this Bruce Lee quote where he says, ‘Never say negative things about yourself or what you're working on even if you're joking, because your body doesn't know the difference.’”

“I never take in any negativity.”

“It never even crosses my mind that something's not going to work. I just keep going until it does work.”

[TraderJane @TraderJane8]

@DougAMacgregor What a shock! https://t.co/sIAa5I8Dtw

[TraderJane @TraderJane8]

@KobeissiLetter I'd rather trust someone like Bernie Madoff than 🌮 .