The VIX, or Volatility Index, is a measure of the expected volatility of the S&P 500 index over the next 30 days. It is calculated using the prices of options on the S&P 500 index. A higher VIX indicates that market participants are expecting more volatility in the future, while a lower VIX indicates that they are expecting less volatility.
The VIX is an...
I'm sure many of you already know TVC:VIX (Volatility Index of the S&P 500) correlates to AMEX:SPY (the S&P 500 micro index). For those who don't and those who do, this is my up to date VIX chart. Please comment what you think! But the general idea is that...
When TVC:VIX goes up, AMEX:SPY goes down
When TVC:VIX goes down, AMEX:SPY goes up
This is...
Market volatility and its expected future changes, as indicated by the VVIX/VIX ratio, can greatly impact investment decision-making. The following guide provides insights into different regimes of this ratio, their implications on market conditions, potential sector rotations, and additional investment strategies that investors might consider.
High Ratio (High...
PRIMARY CHART: S&P 500 (SPX) with VIX/VIX3M ratio in subgraph on a weekly time frame
Tricks for Reading the VIX Part I
SquishTrade's original 2022 article on VIX entitled "Tricks for Reading the VIX" covered the basic concepts of the CBOE's Volatility Index (VIX) to aid in understanding and interpreting VIX and its behavior relative to the S&P 500 ( SP:SPX )....
Amid serious pushback, Chicago Board of Options Exchange (CBOE) went live on 26th April 1973. Options are now a standard tool for portfolio risk management. Not so, back then. They were seen as gambling instruments for reckless speculators.
Shortly after CBOE launch, Fischer Black, Myron Scholes, and Robert Merton provided a mathematical model for computing...
Understanding VIX Generally
VIX measures the pricing of at-the-money options on the S&P 500 SP:SPX FOREXCOM:SPXUSD where such options have about 30 days until expiration. Higher VIX readings mean that demand for at-the-money options on SPX has risen through hedging or bearish positioning (usually both)—meaning that fear and uncertainty has arisen along with...
The VIX, also known as the CBOE Volatility Index, is a widely-used financial instrument used to measure market volatility and investor sentiment. In this article, we will explore how to use the VIX on TradingView to improve your trading strategies.
Before we dive into how to use the VIX, let's first understand what it is and how it works. The VIX is based on the...
Future prices are unknowable and unpredictable. But measuring current conditions and valuations are informative. Tracking vix volatility and using it to make better decisions in my experience has been helpful.
Warning: Avoid buying options are generally costly. Options are a form of borrowing money to use leverage provided by an option seller.
Hi Everyone
In this video I want to share an overview of the importance of economic cycles for traders and investors and how we can use Trading View charts
with no indicators to figure out key economic signals on the following charts:
DXY tops for the end of previous bear markets
VIX normal ranges vs Bear cycles ranges
The Dow Jones Industrial average is...
These are my comments from some conversations I had and I hope you like it :)
It is a weird environment overall, as the market is pretty cheap, the derivatives markets are fairly well balance, on chain data & stablecoins paint a bullish picture for crypto... but in terms of TA and the overall psychology of the market, getting to anywhere between 20-28k &...
VIX structure is a great indicator to plan upcoming Volatility events.
I created this chart to identify entry points for future events that may cause volatility in market indexes.
When VIX6M-VIX9D is above 6 you can find better lower premiums on PUTs to enter a position for a future event.
During the peak IV of the event I cash in.
Before the event I look...
Often while trading markets we use various indicators like SMA, EMA, MACD that are based on the thoery that market trends to follow averages everything else remaining constant. Using the same concept and applying it to vix that it would trade in its normal range we have plotted two horizontal lines on vix. This lines gave us the idea when the market moved beyond...
It is necessary and mandatory to configure alarms in VIX in order to identify best trading opportunities. Analyzing the VIX we realize that we are in a very overweighted buying zone.
- Red lines: time to sell.
- Green lines: time to buy.
For example today is time for selling most items of our portafolio or at least to configure trailing stop at 1%, then we wil...
Since the merger between the Fed and the Treasury (kidding, kind of), I've had so many conversations with individuals outside of the financial industry who struggle to fully grasp how central banks are stealing their money. Today, I'm going to share a short and simple post which I hope will help explain the direct effect of "money printing," on the working class....
Hello Trenders,
Been thinking a lot to or to not publish this signal. Many of you expect a deep on global level, therefore I here show you some mathematic forecast.
This may not be the end of the world, yet it is far worse than the most downbeat forecasts. The evidence to support this outlook is in plain
sight. Some sixth-grade math is a good place to begin...
Here's another example of VIX's effectiveness as a market forecaster, for more information you can review the related idea.
Please leave comments.
Thank you,
Israel
Hi friends!
As we all know, each market crash is accompanied by an increase in its volatility. Here's an example of how a low VIX perfectly predicted today's correction.
Therefore, it is always advisable to have the VIX on our watch list to be able to do a preventive monitoring of the market. When we see low volatility, we must close positions or be very...
Let's begin by introducing Modern Monetary Theory (MMT), which is a contrarian view to the orthodox macroeconomic theory's of the past, such as the Autrian School of Economic Theory. The theory suggests, inter alia, that soveriegn nations which maintain a monopoly on their currency, can essentially use that monopoly to fund government spending, without the need of...
![DXY: How To Spot Economical Cycles Top Using [DXY- SPX and VIX]](https://s3.tradingview.com/2/2Wk8NiQv_mid.png "How To Spot Economical Cycles Top Using [DXY- SPX and VIX]")
