Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Raptor's Den II -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (258)	4/18/2003 3:03:44 PM
From: Win-Lose-Draw	Read Replies (1) \| Respond to of 3432

rsi(14) never touched 30 during '95-'97. stockcharts.com[w,a]declynay[d19950418,19970418][pb200!d20,2][iUe1,200,1!Ub14]&pref=G

To: Justa Werkenstiff who wrote (258)	4/18/2003 11:45:46 PM
From: KevinThompson	Read Replies (1) \| Respond to of 3432

I agree completely with the premise of finding impending reversal of VIX using Bollinger Bands as a guide. One thing to notice on the chart (thank you for posting it BTW), is that the reversals come mostly after a sharp breach of either the upper or lower band. Apparently the VIX can hug the upper or lower band and ride it for quite awhile before reversing. But if you get a spike through the band, you can virtually count on a reversal; implying a sharp reversal in the market indexes as well. Isn't that the most notable characteristic of Volatility Indicators anyway? It's not so important the actual level, as much as it is sharp movement that indicates an impending reversal. Certainly, applying Bollinger Bands to VIX is a good way to monitor for soon coming reversals.