INDIA VIX - OPTION SELLERS BEWAREVolatility is back in the markets after a while and does not look like it will cool off anytime soon.
Another series of spikes is expected which can take INDIA VIX to 25.
Weekly chart of the volatility index shows the range between 16-25 for coming months.
High VIX = Inflated premiums on option contracts.
For beginners ,
India VIX is a volatility index which measures market expectations of near term volatility.
It indicates the investor's perceptions of the market volatility in near term and is based on Nifty OTM options. Higher the India VIX values, higher the expected volatility and vice-versa.
As the volatility index rises, one should become careful as the market can steeply move into either direction
- Animesh Vashisht
Tradingviewindia
MARKET CLOSED. LEARNING NEVER DOES. Before the article, i would like to mention something.
I made the account on tradingview 2 years ago. But its the last 6 months that i have completely fell in love with this platform. Apart from tools, no other platform gives opportunity to connect with a community of traders like this. I like to call this 'Facebook for traders.' I have been spreading the word about it since months now, and i encourage others to do that same. Lets strengthen the Indian community on this platform.
Let us start with the article now,
Breadth analysis is one of the most valuable aspects in technical analysis. It introduces a new dimension to analysis, where it reveals the true strength or weakness of the targeted market. Such dimension is not attainable from the standard price and volume chart.
Breadth Analysis can be applied to any sector in the market or to a specific industry group as long as there is a way to determine their constituents and the components.
In the last few decades analysts have managed to develop some very sophisticated technical indicators based on market breadth. Some of which form a part of this article.
Market breadth indicators are sometimes referred to as broad market indicators, since they do not refer to individual stocks.
Did you know?
In 1901, Charles H.Dow commented in his June 23,1900, editorial in the wall street journal about the number of advancing and declining issues-”Of these 174 stocks, 107 advanced, 47 declined, and 20 stood still.''
This gives us an idea that Market breadth analysis had been paid attention to long before the studies around such analysis came out.
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