Works best as an intraday indicator
Background black & line green = Long VIX
Background black & red line = No trade
Background orange & line green = Consider selling
Background orange & line red = Short VIX
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@Algyros, Algo's multiply as many trends as possible. This makes a random trend (signal) more stable and easier to evaluate. (Example - S&P (500 stocks) is a more steady trend and easier to analyze vs. DJIA (30 stocks)). Physicists (Mathematicians) refer to this as “Convolution”, Statisticians refer to it as “Monte Carlo”, and Engineers refer to it as “Modulation” or a “Control System". Multiplying trends is key to modeling any system such as the stock market or the volatility of the S&P. It’s also the foundation for artificial intelligence.
Simply put, multiple trends that typically correlate in the same direction and this typically works. Example, FANG stocks typically trend together. Multiply these trends and evaluate the trend to truly see the trend.
Essentially it multiples various VIX products (different term structures) associated with the volatility of the the S&P (VIXMO, VIX3M, VXST) and VIX (VVIX). These symbols can be changed (such as using VXO or VIX futures). 9 and 21 EMA are used to signal buy, sell, and caution.