Posted by steve101 on 23rd of Jun 2021 at 04:28 pm
Matt, How do you interpret a close of 110.48? From the article
you referenced a while back: One important note about the VVIX is
that it will frequently rise into the Vomma Zone before a move
lower. This happens as institutions begin to price in the potential
move lower in the market as they hedge their risk into
strength.
I have taken a fair number of positions the past few days, and
will head for the hills if this is suggesting corrective
action.
Yeah it's hard to say. I've generally just used the rule where
the VVIX needed to close below 110 then signal when it closes back
above it. Could it also be a decent signal when the VVIX goes below
110 intra day and only closes slightly above 110 that it's a
warning sign? I don't know, I have not looked back at those
potential signals, it's something you could investigate in the
evening etc.
the only other thing I've experimented with is using a 5 or 15
min VVIX chart and getting some intra day signals for day trade
shorts when it goes above 110, which obviously would have worked
today the last 30 min
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VVIX back below 110, we'll see if it closes that way
Posted by matt on 23rd of Jun 2021 at 03:31 pm
$VVIX - Chart Link-
Matt, How do you interpret
Posted by steve101 on 23rd of Jun 2021 at 04:28 pm
Matt, How do you interpret a close of 110.48? From the article you referenced a while back: One important note about the VVIX is that it will frequently rise into the Vomma Zone before a move lower. This happens as institutions begin to price in the potential move lower in the market as they hedge their risk into strength.
I have taken a fair number of positions the past few days, and will head for the hills if this is suggesting corrective action.
Yeah it's hard to say.
Posted by matt on 23rd of Jun 2021 at 06:30 pm
Yeah it's hard to say. I've generally just used the rule where the VVIX needed to close below 110 then signal when it closes back above it. Could it also be a decent signal when the VVIX goes below 110 intra day and only closes slightly above 110 that it's a warning sign? I don't know, I have not looked back at those potential signals, it's something you could investigate in the evening etc.
the only other thing I've experimented with is using a 5 or 15 min VVIX chart and getting some intra day signals for day trade shorts when it goes above 110, which obviously would have worked today the last 30 min