$VIX - the VIX is currently below the
lower bollinger band, watch this early next week, closing back
inside would generate a sell signal, these VIX signals don't come
very often but the winning % is above 90% on the signals going back
several years
The VIX trades inversely to the S&P 500, so its in regards
to the SPX or general market.
Remember, the VIX has to close back inside the Bollinger Band
for the signal, the close outside the bands simply puts you on the
alert for the signal, but you need a close back inside the bands.
The same is true for buy signals, a buy signal for SPX comes
when VIX closes outside the upper Bollinger Bands and then closes
back inside.
However while the buy/sell signals generally work out most of
the time (90% of the time), they can play out for weeks and
sometimes only short term for a few days, therefore you need
sometime else for an exit signal basically
Thanks to remind it Matt and also positive divergence on the VIX
Daily chart (both RSI and Macd). Volume is coming in CNTF (I
will keep it for the weekend). I wish everybody a great
weekend.
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VIX and bollinger Bands, keep an eye on this
Posted by matt on 20th of Jan 2012 at 02:58 pm
$VIX - the VIX is currently below the lower bollinger band, watch this early next week, closing back inside would generate a sell signal, these VIX signals don't come very often but the winning % is above 90% on the signals going back several years
$VIX - may also be forming a wedge
Sell signal
Posted by billnew52 on 20th of Jan 2012 at 08:49 pm
Matt, to clarify when you say sell signal. Do you mean a sell on the general market?
The VIX trades inversely to
Posted by matt on 21st of Jan 2012 at 03:45 pm
The VIX trades inversely to the S&P 500, so its in regards to the SPX or general market.
Remember, the VIX has to close back inside the Bollinger Band for the signal, the close outside the bands simply puts you on the alert for the signal, but you need a close back inside the bands.
The same is true for buy signals, a buy signal for SPX comes when VIX closes outside the upper Bollinger Bands and then closes back inside.
However while the buy/sell signals generally work out most of the time (90% of the time), they can play out for weeks and sometimes only short term for a few days, therefore you need sometime else for an exit signal basically
vix chart
Posted by Robert50 on 22nd of Jan 2012 at 05:41 am
vix chart
I see we have a
Posted by marcus on 22nd of Jan 2012 at 01:39 am
I see we have a New Moon this Monday
Indeed, moon cycle has not
Posted by steveo on 22nd of Jan 2012 at 07:25 pm
Indeed, moon cycle has not been in sync with markets for several months. It usually is only out of sync for several month, then gets in sync.
Yes it's a sell signal for the market
Posted by mrab on 20th of Jan 2012 at 08:56 pm
Thanks to remind it Matt
Posted by CEDRIC on 20th of Jan 2012 at 03:15 pm
Thanks to remind it Matt and also positive divergence on the VIX Daily chart (both RSI and Macd). Volume is coming in CNTF (I will keep it for the weekend). I wish everybody a great weekend.