Index Reversal Range with Volatility Index or VIX

2022년 5월 29일

What is the Indicator?
• The indicator is a visualization of maximum price in which the respective index can go up to in comparison with it's Volatility Index or VIX.

Who to use?
• Intraday
• Swing
• Position
• Long term Investors
• Futures
• Options
• Portfolio Managers
• Mutual Fund Managers
• Index Traders
• Volatility based Traders
• Long term Investors and Options Traders gets the maximum benefit

What timeframe to use?
• 1 Year: Position & Investors
• 6 Months: Position & Investors
• 3 Months: Swing & Position
• 1 Month: Swing & Position
• 1 Week: Swing
• 1 Day: Swing
• 1 Hour: Intraday & Swing

What are Upper and Lower lines?
• Upper Line: If the index price reach closer to the Upper line there is a high chance of reversal to Bearish trend.
• Lower Line: If the index price reach closer to the Lower line there is a high chance of reversal to Bullish trend.
• This need to be confirmed with multiple levels like Daily, Weekly, Monthly etc.

How to use?
• If the price reach closer to that level there is a high chance of reversal from the current trend.
• To identify the reversal zone of the index.
• To identify the trend.
• Option Traders can Sell a Call or Put Option from that level.
• Long term Investors, Position or Swing traders can plan for a Long entry.
• Intraday traders can use lower timeframes to do the same.

Indicator Menu
• Input VIX: Identify the VIX Symbol of your Index and type it in the box.
• For example for NIFTY Index chart type INDIAVIX in the box.
• Choose multiple timeframes according to your convenience.

How to turn on indicator Name and Value labels?
• Right side of the screen >
• Right click on the Price scale >
• Labels > Indicators and financial name labels, Indicators and financial value labels

Further Reading:
• Various videos and reading materials are available about this method.

2022년 5월 29일

릴리즈 노트

Updated on 29 May 2022

• Added dots between lines.
  

2022년 5월 31일

릴리즈 노트

Updated on 31 May 2022

• Updated with current Volatility levels as Lines and Labels.
  
• The number in % is the Volatility Percentage which appear at the end of each label.
  
• Removed the dots on lines as it looks clustered.
  

2022년 6월 10일

릴리즈 노트

Updated on 10 June 2022

• Added timeframes 30, 5 and 1 minutes.
  Note: The gap between lines is the limitation of script. Draw a line manually to fill that for now.