>> That's a nice chart Chris, can you give any interpretation on that chart?
Well, to be honest, most of my thinking comes from the folks that i read (James Deporre and Cody Williard over on RealMoney.Com, Don Sew on Marketswing.com, Zeev Hed on IHub, and will probably add David to that list.) These folks have been trading for longer then i have, and generally have a better read on the market then i do.
I look at the VIX, Summation Index, Bullish % and Stock over 50DMA, and the 21DMA of the put/call ratio, II Survey as way of confirming what they say.
So really can't say i have used the VIX as a trading tool, just a confirmation tool.
>> Could you share your personal experience using VIX? How did it help?
I have not used that much and watched long enough to say if it helps.
>> Any VIX level which is important to you? Such as below 20 or over 40?
It's the extreme numbers that seem to have signicants. Above 40 seems to mean we are close to low, and below 30 seems to mean we are close to high. I've read some hedge fund guys who use the 10DMA on the VIX, and wait for the 10DMA to switch from down to up to know if we hit the VIX Low, and market top.
There is another technique that i just learned about that compares the VIX and the 30day historical volitility, but still learning about this technique, to say much about it.
Some days, feel like a blind man groping along the ground, trying to find something that may or may not be there. I realise there are no magic bullets for market analysis, but that does not mean i won't stop looking. :) |
