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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: underdog430 who wrote (14286)	9/27/2001 11:04:14 PM
From: KymarFye	Respond to of 18137

I keep an eye on some Connors VIX Reversal set-ups, though I've never traded them as such: They seem to work best in a ranging market, though there appear to be ways of trading them through heavily trending markets that at least seem to test out well over time. The CVRs as well as traditional ones have lately served to underline the obvious: The market has gone through an extreme reaction. By my calculations, Connors VIX III, which as you probably know compares VIX to its moving average, just came off twelve days in a row of being on a "buy," an extraordinary event. Obviously, if you'd been trading the set-up mechanically during that period (in other words, if you were totally nuts), you'd have a lot of making up to do. Though I've experimented with some of Connors' other volatility-based trading set-ups and position-sizing and stop-placement rationales, I mainly used volatility indicators for screening purposes ("trading where the action is," in Connors' phrase), as I've found that high historical volatility readings (in conjunction with other factors) tend to correlate with high day-tradability, at least for the way I like to trade.

To: underdog430 who wrote (14286)	9/28/2001 1:31:40 PM
From: Wayners	Read Replies (2) \| Respond to of 18137

One thing to keep in mind is that VIX will cover trading on the SP500 and VXN, will cover trading on the Nasdaq 100.

To: underdog430 who wrote (14286)	9/29/2001 2:08:27 PM
From: WaveSeeker	Read Replies (3) \| Respond to of 18137

Connors makes more from his $100 books than anything else - 100 pages of 72-point font that could fit into 10 pages of any other textbook. TradingMarkets.com profits from traders, not trading. If you want a good system, use a VIX or VXN moving average crossover system. When the fast crosses above the slow, short the market (because of the inverse relationship between the market and any volatility index), and vice versa. There ya go, and it's free. Regards, WS