Negative divergence on RSI indicates that some bit of cool down may take place before resume of upmove in volatility. Break of RSI failure should be observed for confirmation. Option writing can be done who can take high risk and do not want to wait for RSI failure breakout. 80-40 rule of RSI must be remembered while observing CBOE VIX.
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.