KeironRichie

Market Index Strength by Keiron Richie

By combining the true strength of the Nasdaq (NDX) and S&P500 ( SPY ) we can then compare that against the volatility /fear index ( VIX ). The true strength of the Volatility Index ( VIX ) is shown by the red area and the Nasdaq (NDX) and S&P500 ( SPY ) by the silver /teal areas.

The yellow EMA line shows the average difference between the VIX and the NDX/ SPY indexes. When the yellow line crosses above the zero line and is climbing it means that the NDX/ SPY are strengthening. When the yellow line is decreasing or crosses under the zero line it means the fear ( VIX ) is becoming stronger and NDX/ SPY are weakening.

When looking at charts of companies/components listed on the Nasdaq and/or S&P 500 you will notice a frequent correlation between the movement of the yellow line depicting index health and the strength of the chart you are viewing. It’s a very quick and effective method of seeing the strength and fear within the market indexes and how they are effecting your chart.

The background color changes based on the market strength combined with the active symbol true strength. Green is a buy zone, Red is a sell zone.

It is tested and works well on all timeframes with Stocks listed on NASDAQ & S&P500 . It does not include buy/sell alerts.
Invite-only script

Access to this script is restricted to users authorized by the author and usually requires payment. You can add it to your favorites, but you will only be able to use it after requesting permission and obtaining it from its author. Contact KeironRichie for more information, or follow the author's instructions below.

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For more info visit:
https://www.keironrichie.com

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