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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: Paxb2u who wrote (13375)1/21/1998 7:10:00 AM
From: William H Huebl  Read Replies (1) | Respond to of 94695
 
Hi Peter,

Speaking for me, I know MY use of the VIX is new and I am trying to find ways of using it. Thus far I have found (in a year's worth of data):

- VIX runs opposite to the DOW... generally.
- if you can draw a Raff channel or even least square line over a year's data and then 2 parallel lines to that/those lines, you can see a regular pattern in which the low line represents sells (VIX is currently BELOW that line) and the high line, around 32 at present, represents a buy area.

- Bollinger bands can also be used to show buy and sell points.
- A 17 day exponential or weighted MA can be helpful.
- MACD can give some pretty good buy and sell signals.
- more sophisticated indicators can also be helpful.

IN MOST CASES, REMEMBER TO REVERSE THE SIGNALS.... a buy signal becomes a sell signal and vice versa!

Bill

PS We had an MACD signal to sell (which is a buy) several days ago and we should be getting a sell very soon)

BWDIK?