Fear gauges: the VIX, funding and sentiment
Read sentiment measures as descriptions of recent moves, not forecasts.
Module 6 of 26, Market mood, the day’s average price, and fair tests. Lesson 4 of 6, about 16 minutes.
The takeaway
Sentiment gauges measure the move that just happened, not the move that comes next. Charge costs and compare with a simple baseline before trusting any gauge.
This page is a public summary. The full lesson has the worked examples, an interactive exercise and a short quiz, and sits in the course. Lessons 1 and 2 of Module 1 are free and the rest need a pass.
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