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Joined: 11/18/2009(UTC)
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Location: Meridian, MS
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I am fairly new to technical analysis. Recently I have traded with some success VXX. Since it measures volatility, the fear index, the potential to make or lose money in short order is high. Most of the indicators I have used are trending indicators such as MACD and RMO and they are not very useful with the VIX. Any thougths on indicators that would be more useful in this area?
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Rank: Advanced Member
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Joined: 8/12/2005(UTC)
Posts: 73
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VIX is essence is a market sentiment or volatility or selling pressure broad market indicator or it was designed for it. If you are trying to use indicators that were designed for base securities like example you are going to have a problem. The VIX is like a advance decline liine scenario is is really measures volatility like 1 period average true range... Use the base index that the VIX is looking at and use normal indicators to track the base index and it is the S&P 500 i thinks. it works the opposite of that.
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Rank: Advanced Member
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Joined: 5/25/2010(UTC)
Posts: 55
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I'm primarily an options trader right now and I've heard a fair bit of commentary on trading these volatility instruments. Most prevalent are comments related to one's understanding of how they are derived. Is this based on the spot VIX or the VIX futures, for example? The difference can be substantial between the two. To what extent does this correlate with the VIX? I see the VXX is down 62.5% over the last year. The VIX is about flat over the last year: virtually unchanged.
If you're not completely educated and aware of these things then I would avoid trading it entirely or trade it small as you would the lottery--just my opinion.
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Rank: Newbie
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Joined: 5/7/2010(UTC)
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The VIX is like a advance decline liine scenario is is really measures
volatility like 1 period average true range _________________________________ Discount Wholesale Cheap jerseys online outlet. Find the jerseys you need to support your idol.
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Rank: Advanced Member
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Joined: 8/12/2005(UTC)
Posts: 73
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Sounds like someone has been reading my posts. Glad to have a follower.
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