feat: Complete global market sentiment integration with Fear & Greed Index
- Enhanced 24/7 automation with sentiment-based threshold adjustments - Multi-asset global trader supporting BTC, ETH, SOL, ADA - Comprehensive sentiment indicators guide with 8 categories - Global sentiment API providing real-time market regime detection - Fear & Greed Index integration with fallback estimation - Sentiment-adjusted confidence thresholds and position sizing - Successfully executed first sentiment-aware trade (GREED regime) - Market regime classification: EXTREME_FEAR to EXTREME_GREED - Trading threshold adjustments based on market psychology
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GLOBAL_SENTIMENT_INDICATORS.md
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GLOBAL_SENTIMENT_INDICATORS.md
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# 🌍 Global Market Sentiment Indicators Guide
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## 🔥 **YES! Fear & Greed Index is Essential**
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The Crypto Fear & Greed Index is one of the **most valuable** sentiment indicators because:
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- **Contrarian Signal**: Extreme fear = buying opportunity, Extreme greed = selling opportunity
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- **Market Psychology**: Captures emotional extremes that drive market cycles
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- **Proven Track Record**: Extreme fear often marks major bottoms (COVID crash, FTX collapse)
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- **Real-time Data**: Updates daily with current market psychology
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## 📊 **Essential Sentiment Indicators for Global Trading**
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### **1. Fear & Greed Indicators**
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```javascript
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// Crypto Fear & Greed Index (0-100)
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fearGreedIndex: {
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value: 25, // Current reading
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classification: 'Fear',
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signals: {
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0-25: 'EXTREME_FEAR - Strong buy signal',
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25-45: 'FEAR - Cautious buy opportunity',
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45-55: 'NEUTRAL - Technical analysis primary',
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55-75: 'GREED - Consider profit taking',
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75-100: 'EXTREME_GREED - Strong sell signal'
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}
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}
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```
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### **2. Volatility Indicators**
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```javascript
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// VIX (S&P 500 Volatility Index)
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vix: {
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value: 18.5,
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interpretation: {
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'<15': 'COMPLACENCY - Volatility spike risk',
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'15-25': 'NORMAL - Stable market conditions',
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'25-35': 'ELEVATED - Increased uncertainty',
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'>35': 'PANIC - Extreme fear/opportunity'
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}
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}
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// GVIX (Crypto Volatility Index)
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cryptoVIX: {
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value: 85,
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interpretation: 'Higher than traditional markets = more opportunity/risk'
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}
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```
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### **3. Macro Economic Indicators**
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```javascript
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// Dollar Strength Index (DXY)
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dollarIndex: {
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value: 103.2,
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impact: {
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'>105': 'STRONG_DOLLAR - Crypto/risk asset headwind',
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'95-105': 'STABLE - Neutral for risk assets',
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'<95': 'WEAK_DOLLAR - Crypto/risk asset tailwind'
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}
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}
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// 10-Year Treasury Yields
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bondYields: {
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value: 4.2,
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impact: {
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'Rising': 'Competition for risk assets - bearish crypto',
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'Falling': 'Money flows to risk assets - bullish crypto',
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'>5%': 'Extreme competition - very bearish crypto'
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}
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}
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```
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### **4. Crypto-Specific Sentiment**
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```javascript
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// Bitcoin Dominance (BTC.D)
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bitcoinDominance: {
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value: 52.3,
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signals: {
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'Rising': 'Flight to quality - BTC outperforming alts',
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'Falling': 'Risk-on - Altcoin season potential',
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'>60%': 'Extreme BTC strength - alts struggling',
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'<40%': 'Extreme alt strength - bubble risk'
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}
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}
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// Stablecoin Dominance
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stablecoinDominance: {
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value: 8.5,
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signals: {
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'Rising': 'Money moving to sidelines - bearish',
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'Falling': 'Money deploying to risk - bullish'
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}
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}
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```
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### **5. Traditional Market Sentiment**
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```javascript
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// CNN Fear & Greed Index (Traditional Markets)
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traditionalFearGreed: {
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value: 45,
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impact: 'High correlation periods - crypto follows traditional markets'
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}
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// AAII Investor Sentiment (Retail Sentiment)
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aaiSentiment: {
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bullish: 35,
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bearish: 40,
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neutral: 25,
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signal: 'Excessive bearishness = contrarian buy opportunity'
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}
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```
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### **6. On-Chain Sentiment Indicators**
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```javascript
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// Long-Term Holder Behavior
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onChainMetrics: {
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longTermHolderMVRV: 0.85, // <1 = accumulation opportunity
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netUnrealizedProfitLoss: -15, // Negative = fear/opportunity
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exchangeInflowsOutflows: 'outflows', // Outflows = bullish
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whaleAccumulation: 'increasing' // Whale buying = bullish
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}
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// Network Value Indicators
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networkHealth: {
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activeAddresses: 'declining', // Bearish for adoption
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transactionFees: 'low', // Low usage = opportunity or concern
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hashRate: 'increasing' // Security improving = bullish
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}
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```
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### **7. Social Sentiment Indicators**
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```javascript
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// Google Trends
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googleTrends: {
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bitcoin: 45, // 0-100 relative search interest
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crypto: 32,
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trend: 'declining', // Low interest = potential opportunity
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signal: 'Extreme low search = market bottom signal'
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}
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// Reddit/Twitter Sentiment
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socialSentiment: {
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redditPosts: 'decreasing', // Less discussion = less hype
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twitterMentions: 'negative', // Negative sentiment = opportunity
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influencerSentiment: 'bearish' // Contrarian signal
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}
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```
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### **8. Institutional Sentiment**
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```javascript
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// Futures Market Sentiment
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futuresData: {
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bitcoinFuturesOI: 'declining', // Open interest trends
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fundingRates: -0.01, // Negative = shorts paying longs
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perpetualPremium: 0.02, // Low premium = less euphoria
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optionsPutCallRatio: 1.8 // High ratio = fear/opportunity
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}
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// ETF Flows (When available)
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etfFlows: {
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bitcoinETF: 'outflows', // Institutional selling
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equityETF: 'inflows', // Risk-on traditional markets
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bondETF: 'outflows' // Flight from safety
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}
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```
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## 🎯 **How to Use These Indicators**
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### **Market Regime Detection**
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```javascript
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// Combine indicators to detect market regime
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function detectMarketRegime(indicators) {
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if (fearGreed < 25 && vix > 30 && dollarIndex > 105) {
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return 'CRISIS_OPPORTUNITY'; // Strong buy signal
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}
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if (fearGreed > 75 && vix < 15 && cryptoVIX < 50) {
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return 'EUPHORIA_WARNING'; // Strong sell signal
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}
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if (btcDominance > 60 && stablecoinDominance > 12) {
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return 'CRYPTO_WINTER'; // Long-term accumulation
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}
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return 'NEUTRAL';
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}
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```
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### **Position Sizing Based on Sentiment**
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```javascript
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// Adjust position sizes based on sentiment confluence
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function calculatePositionSize(baseSize, sentiment) {
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let multiplier = 1.0;
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// Fear indicators (increase size)
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if (fearGreed <= 25) multiplier += 0.5;
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if (vix > 30) multiplier += 0.3;
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if (socialSentiment === 'extremely_negative') multiplier += 0.2;
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// Greed indicators (decrease size)
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if (fearGreed >= 75) multiplier -= 0.5;
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if (vix < 15) multiplier -= 0.3;
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if (googleTrends > 80) multiplier -= 0.4;
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return baseSize * Math.max(0.2, Math.min(2.0, multiplier));
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}
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```
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## 🚀 **Most Impactful Indicators to Start With:**
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### **Tier 1 (Essential)**
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1. **Crypto Fear & Greed Index** - Primary sentiment gauge
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2. **VIX** - Volatility/risk appetite measure
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3. **Bitcoin Dominance** - Crypto market dynamics
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4. **DXY (Dollar Index)** - Macro headwind/tailwind
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### **Tier 2 (High Value)**
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5. **Bond Yields** - Risk asset competition
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6. **Funding Rates** - Crypto futures sentiment
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7. **Stablecoin Dominance** - Money flow direction
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8. **Google Trends** - Retail interest gauge
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### **Tier 3 (Advanced)**
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9. **On-chain metrics** - Whale/institutional behavior
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10. **Social sentiment** - Contrarian signals
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11. **Options data** - Sophisticated money positioning
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## 💡 **Implementation Priority:**
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**Phase 1**: Integrate Fear & Greed + VIX + Bitcoin Dominance
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**Phase 2**: Add DXY and Bond Yields for macro context
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**Phase 3**: Include on-chain and social sentiment for complete picture
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This multi-layered approach gives you a **true global market outlook** beyond just technical analysis! 🌍
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