How does it work?

Our index uses complex algorithms and data to score emotion with the market.

We use 7 data and 3 AI algorithms to create 10 indicators:

• Price

• Volume

• Volume Share

• Momentum

• Volatility

• Whale Watch

• Exchanges

• Trading Indicators

• Community

• Research

All these indicators receive their own individual score. Different indicators have different weights based on their importance. The combined scores, with our special emphasis on selected indicators, create the best sentiment Index out there.

Price

Price is a simple indicator but one of the key building blocks to the Wise & Naive Index. It's designed to evaluate and assign a specific numerical value to a token's price evolution.

Our algorithm analyses price movements to determine whether the market is leaning bearish or bullish, with a scale ranging from 0 to 100.

Volume

Volume is a simple and self explanatory algorithm.

An uptick in volume signals heightened activity in the market, driven by increased interest—a clear reflection of strong sentiment. In bull markets, high volume often indicates a strong sentiment, while in bear markets, it points to a weak sentiment.

Similar to price, this metric is measured on a scale from 0 to 100.

Volume Share

This indicator examines the token's dominance in relation to the broader market. When greed drives the market, investments in altcoins surge, boosting total market capitalization and reducing Bitcoin's dominance. The opposite occurs during market panics.

To capture this dynamic, we calculate both individual token capitalization and overall market capitalization.

Additionally, there's a notable correlation between Bitcoin’s dominance and that of leading altcoins, so this indicator provides distinct values for each cryptocurrency.

Volume Share is scored from the range of 0 to 100.

Momentum

Momentum is one of our more advanced algorithms. Momentum within the market has one of the biggest impacts on emotion and we make sure to score momentum on different blockchains differently depending on their influence within the market.

When prices rise quickly, it leads to a higher sentiment score. On the other hand, a sharp drop in prices, will lead to a lower sentiment score.

Momentum is scored from the range of 0 to 100.

Volatility

Volatility is a more common algorithm, however ours is not just based upon the price or volume share, but also the community sentiment and emotion around a certain cryptocurrency alongside the general market. This makes our Volatility algorithm not so common.

Higher volatility implies a riskier market, which further polarises bullish and bearish sentiments. An increase in volatility implies a higher sentiment score in a bull market, but also a lower sentiment score in a bear market.

Volatility is scored from the range of 0 to 100.

Whale Watch

One key factor in the cryptocurrency market is the activity of big players, often called whales.

Whale Watch is a unique algorithm we've made to keep track of the bigger players within the market and reference their movements to the current sentiment.

It looks at large-scale moves in two ways: it checks how much of a token is being moved from wallets to exchanges and compares that with how many stablecoins are being moved as well. This helps estimate whether more buying or selling is likely to happen.

Whale Watch is scored from 0 to 100.

Exchanges

Exchanges is the algorithm that lets us see the future and predict the next move more closely than any other. Using order books and user behavior on exchanges we can see strong support and harsh sell walls ahead of time, alongside other useful indicators.

Exchanges is scored from the range of 0 to 100.

Trading Indicators

Trading Indicators is our first AI driven algorithm that is constantly grading every single chart and crypto currency against the most popular and efficient trading indicator tools. All the way from RSI to AO, to CCI, Fibonacci Levels, even MFI. Our AI tracks over 30 different indicators at all times.

Trading Indicators works directly with the Price, Volume, Volume Share, Momentum, Volatility, Whale Watch, Exchanges, Community and Research Algorithms.

Trading Indicators is scored from the range of 0 to 100.

Community

Community is the purest indicator of sentiment across anything in the world. Our AI algorithm uses social media, top crypto platforms, and soon Telegram to track, learn and study keywords alongside other factors to report back a score.

Community is scored from the range of 0 to 100.

Research

Research is an important AI algorithm as it's a way to effectively look at what people are thinking before they take action. Using trends from Google and data from Bing, Yahoo, Baidu and Yandex, our AI is learning, tracking and scoring keywords alongside their language used in a sentiment dominant context.

Research is scored from the range of 0 to 100.

A look since launch.

Here’s a comparison between the “Wise & Naive Index” & the “Fear & Greed Index” since we launched:

There is a clear winner in usefulness.