When the VIX closes outside of a the Bollinger Band and then
reverses back within the band, it represents a valid signal for the
SPX. In this case, it closed BELOW the lower BB and then
reversed back above producing a SELL SIGNAL on the SPX (at least
for the short term). The opposite is true if it closed above
and fell back within.
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Can you please explain a
VIX Daily with BB's
Posted by deberah on 12th of Jan 2010 at 01:05 pm
Can you please explain a little more. What do you mean by "good signal"?
When the VIX closes outside
Posted by steve on 12th of Jan 2010 at 01:14 pm
When the VIX closes outside of a the Bollinger Band and then reverses back within the band, it represents a valid signal for the SPX. In this case, it closed BELOW the lower BB and then reversed back above producing a SELL SIGNAL on the SPX (at least for the short term). The opposite is true if it closed above and fell back within.