VIX Oscillator
This is my VIX Oscillator indicator.
About it:
This indicator takes the Z-Score of the VIX and of the current ticker you are on and presents them in the format of an oscillator.
Key parts of the indicator:
A diagram of the key elements of the indicator are displayed above.
Purple Line: Represents the Z-Score of the current Ticker.
Blue Line: Represents the Z-Score of the VIX
Green fill line: Represents bullish divergence
Red fill line: Represents bearish divergence
How to use it:
Characteristics for long entries:
- Look for recent bullish divergence (green fill line)
- Look for the ticker line (purple line) to be holding above 0 (neutrality)
- look for a bullish cross (purple line (ticker) crossing over blue line (VIX))
Characteristics for short entries:
- Look for recent Bearish divergence
- Look for the VIX line (blue line) to be holding above 0 and the Ticker
- Look for the ticker line to be holding below 0
- Look for a bearish cross (blue crossing above purple)
Some principles:
The bands represent oversold, overbought and neutral.
0 is absolute neutrality. No bias here.
Anything towards + 2.5 is considered normal, moving towards overbought (2.5 or higher).
Anything towards -2.5 is considered normal, moving towards oversold (-2.5 or lower).
+2.5 or higher is overbought.
-2.5 or lower is oversold.
As always, I have prepared a quick tutorial video for your reference of this indicator:
Please let me know your questions, comments or suggestions about this indicator below.
Thank you for checking it out!
About it:
This indicator takes the Z-Score of the VIX and of the current ticker you are on and presents them in the format of an oscillator.
Key parts of the indicator:
A diagram of the key elements of the indicator are displayed above.
Purple Line: Represents the Z-Score of the current Ticker.
Blue Line: Represents the Z-Score of the VIX
Green fill line: Represents bullish divergence
Red fill line: Represents bearish divergence
How to use it:
Characteristics for long entries:
- Look for recent bullish divergence (green fill line)
- Look for the ticker line (purple line) to be holding above 0 (neutrality)
- look for a bullish cross (purple line (ticker) crossing over blue line (VIX))
Characteristics for short entries:
- Look for recent Bearish divergence
- Look for the VIX line (blue line) to be holding above 0 and the Ticker
- Look for the ticker line to be holding below 0
- Look for a bearish cross (blue crossing above purple)
Some principles:
The bands represent oversold, overbought and neutral.
0 is absolute neutrality. No bias here.
Anything towards + 2.5 is considered normal, moving towards overbought (2.5 or higher).
Anything towards -2.5 is considered normal, moving towards oversold (-2.5 or lower).
+2.5 or higher is overbought.
-2.5 or lower is oversold.
As always, I have prepared a quick tutorial video for your reference of this indicator:
Please let me know your questions, comments or suggestions about this indicator below.
Thank you for checking it out!
Release Notes:
Quick update so that the indicator defaults to the chart. I know this caused some confusion.
Also defaults to the 75 timeframe.
The 2 timeframes I use for intra-day trading is 14 and 75. I find the 75 less "noisy".
The timeframe I use for large analysis (1 hour and Daily) tends to be the 14.
Experiment as you like :-).
Also defaults to the 75 timeframe.
The 2 timeframes I use for intra-day trading is 14 and 75. I find the 75 less "noisy".
The timeframe I use for large analysis (1 hour and Daily) tends to be the 14.
Experiment as you like :-).
Release Notes:
Cleaned up coding. No functional change.
Release Notes:
Updated based on user feedback.
Now permits setting alert conditions for Bearish and Bullish instances.
Bullish = VIX is overbought (Z-Score >= 2.5) and Ticker is oversold (Z-Score <= -2.5)
Bearish = VIX is oversold (Z-Score >= -2.5) and Ticker is overbought (Z-Score <= 2.5)
Cleaned up the coding as well.
Now permits setting alert conditions for Bearish and Bullish instances.
Bullish = VIX is overbought (Z-Score >= 2.5) and Ticker is oversold (Z-Score <= -2.5)
Bearish = VIX is oversold (Z-Score >= -2.5) and Ticker is overbought (Z-Score <= 2.5)
Cleaned up the coding as well.
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