What Each Indicator Measures
AAII Sentiment Survey
AAII Sentiment Survey is a breadth/sentiment indicator used to measure how many assets participate in a move. Breadth and sentiment indicators aggregate data across many stocks or contracts. They reveal whether a market rally or sell-off is broad-based or narrow.
Fear & Greed Index
Fear & Greed Index is a breadth/sentiment indicator used to measure how many assets participate in a move. Breadth and sentiment indicators aggregate data across many stocks or contracts. They reveal whether a market rally or sell-off is broad-based or narrow.
Signal Interpretation
AAII Sentiment Survey
- Rising breadth confirms bullish trends.
- Diverging breadth warns of fragile rallies.
- Extreme readings can mark sentiment peaks.
- Use with price structure for timing.
Fear & Greed Index
- Rising breadth confirms bullish trends.
- Diverging breadth warns of fragile rallies.
- Extreme readings can mark sentiment peaks.
- Use with price structure for timing.
Settings Comparison
| Setting | AAII Sentiment Survey | Fear & Greed Index |
|---|---|---|
| Default | Standard exchange or index settings. | Standard exchange or index settings. |
| Faster | Shorter lookbacks for tactical timing. | Shorter lookbacks for tactical timing. |
| Slower | Longer windows for structural signals. | Longer windows for structural signals. |
When To Use Each Indicator
AAII Sentiment Survey
- You want to validate that a rally or sell-off is broad.
- Market conditions show index trends and turning points.
- You prefer a indicator line signal style.
Fear & Greed Index
- You want to validate that a rally or sell-off is broad.
- Market conditions show index trends and turning points.
- You prefer a indicator line signal style.
Scorecard Comparison
I score each indicator on clarity, reliability, responsiveness, versatility, and ease of use to highlight how they behave in real conditions.
How easy the signals are to read at a glance. Both score evenly, so choose based on signal style preference.
AAII Sentiment Survey: 6/10
Fear & Greed Index: 6/10
How consistently the indicator behaves in its ideal market conditions. Both score evenly, so choose based on signal style preference.
AAII Sentiment Survey: 6/10
Fear & Greed Index: 6/10
How quickly the indicator reacts to price changes. Both score evenly, so choose based on signal style preference.
AAII Sentiment Survey: 6/10
Fear & Greed Index: 6/10
How well the indicator works across assets and timeframes. Both score evenly, so choose based on signal style preference.
AAII Sentiment Survey: 5/10
Fear & Greed Index: 5/10
How straightforward it is to interpret and apply without overfitting. Both score evenly, so choose based on signal style preference.
AAII Sentiment Survey: 5/10
Fear & Greed Index: 5/10
FAQ
Which indicator is better: AAII Sentiment Survey or Fear & Greed Index?
Both indicators score similarly, so the choice comes down to how you prefer signals. AAII Sentiment Survey is typically read as a indicator line, while Fear & Greed Index behaves more like a indicator line. Pick the one that fits your workflow.
Can I use AAII Sentiment Survey and Fear & Greed Index together?
Yes. I often use the stronger one for bias and the other for confirmation, especially when I want multiple perspectives without overloading the chart.
Which is easier for beginners?
AAII Sentiment Survey is slightly easier to interpret based on the ease-of-use score (5/10 vs 5/10).
When should I avoid using AAII Sentiment Survey and Fear & Greed Index?
Avoid both when the market is choppy and direction is unclear. In those periods, use one indicator for bias and wait for structure confirmation before taking entries.