What insights can beginners gain from the Fear & Greed Index showing extreme fear at 20?
Why is this the correct answer?
This is correct because the Fear & Greed Index reaching extreme fear often indicates that prices may be oversold. Beginners should understand that when the index falls to very low levels, it can serve as a contrarian signal suggesting potential buying opportunities as market sentiment hits a pessimistic extreme, which historically has sometimes preceded price recoveries.
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