Volatility Indices

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market_indicators:volatility_indices [2019/10/07 20:25]
betseyp [Symbol List]
market_indicators:volatility_indices [2021/02/16 15:54] (current)
betseyp [Detrending with the PPO]
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 {{:​market_indicators:​volatility_indices:​vix-9-detrend.png|Volatility Index  -  Chart 9}} {{:​market_indicators:​volatility_indices:​vix-9-detrend.png|Volatility Index  -  Chart 9}}
  
-The green dotted lines show when the VIX PPO moved back below its bearish extreme (25). As with the VIX, timing can be improved by waiting for a reversal back below 25. Notice how the VIX PPO moved above 25 in September 2008 and remained above 25 for several weeks as the market continued to fall. Turning bullish on the initial move above 25 would have been costly. The red dotted lines show periods of excessive ​bearishness ​from September 2006 until January 2009. After the market bottomed in March 2009, the VIX PPO moved below -10 quite often and these excessive bullishness signals did not work during the strong uptrend. ​+The green dotted lines show when the VIX PPO moved back below its bearish extreme (25). As with the VIX, timing can be improved by waiting for a reversal back below 25. Notice how the VIX PPO moved above 25 in September 2008 and remained above 25 for several weeks as the market continued to fall. Turning bullish on the initial move above 25 would have been costly. The red dotted lines show periods of excessive ​bullishness ​from September 2006 until January 2009. After the market bottomed in March 2009, the VIX PPO moved below -10 quite often and these excessive bullishness signals did not work during the strong uptrend. ​
  
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