Works best as an intraday indicator Background black & line green = Long VIX Background black & red line = No trade Background orange & line green = Consider selling Background orange & line red = Short VIX
Hi, great indicator! Could i use this for forex? if sho which pairs? thanks !!!
Algyros
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Thank you for sharing this. Could you describe how it works (that is, in general, non-algo, terms)? Also, is this chart something that you, yourself, trade, and, if so, how have your results been?
Alex
jjfrost
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@Algyros, Algo's multiply as many trends as possible. This makes a random trend (signal) more stable and easier to evaluate. (Example - S&P (500 stocks) is a more steady trend and easier to analyze vs. DJIA (30 stocks)). Physicists (Mathematicians) refer to this as “Convolution”, Statisticians refer to it as “Monte Carlo”, and Engineers refer to it as “Modulation” or a “Control System". Multiplying trends is key to modeling any system such as the stock market or the volatility of the S&P. It’s also the foundation for artificial intelligence.
Simply put, multiple trends that typically correlate in the same direction and this typically works. Example, FANG stocks typically trend together. Multiply these trends and evaluate the trend to truly see the trend.
jjfrost
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@jjfrost, One last and very important point, a log chart is necessary when evaluating trends that are multiplied.
jjfrost
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Essentially it multiples various VIX products (different term structures) associated with the volatility of the the S&P (VIXMO, VIX3M, VXST) and VIX (VVIX). These symbols can be changed (such as using VXO or VIX futures). 9 and 21 EMA are used to signal buy, sell, and caution.
wiseamo
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Hi, under Style the Long EMA Close and Short EMA Close color is not working. What does it do?
practicalCode9722
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Hi. does the background Orange color mean VIX is not in backwardation ?
practicalCode9722
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@practicalCode9722, @jjfrost sorry i later realized the Orange color has nothing to do with backwardation :) question please. for a "vix" indicator, whats the advantage of tracking: VIXMO, VIX3M, VVIX & VXST instead of directly the VIX. I understand there is probably a good reason, just trying to know why. And why isnt "VIX" also added into its calculation ? also I noticed in tradingview the data for VIXMO, VIX3M, VVIX, VXST are delayed where as VIX(source:TVC but not CBOE) is realtime. currently tradingview isnt supporting realtime data for these, there isnt a paid option either to buy the realtime data
SG_Investor
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Thank you! Will be trying this out.
SG_Investor
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@SG_Investor, Have a quick Q, what does the Close line mean? Is there any significance if the close line is above or bellow the two lines which can be either red or green?