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Strategies & Market Trends : E-mini and S&P Futures Trading Discussion in Realtime -- Ignore unavailable to you. Want to Upgrade?

To: Jimsy who wrote (28)	5/10/1999 11:27:00 AM
From: John	Read Replies (1) \| Respond to of 119

Jimsy, Here is the explanation of the CVR signals: ==================================================================== Explanation of Connors VIX Reversal (CVR) III The Connors VIX Reversal strategies were created by Larry Connors and introduced in his book Connors On Advanced Trading Strategies. The VIX is the Chicago Board Options Exchange (CBOE) Volatility Index, which reflects the market consensus estimate of future volatility by measuring the implied volatility of OEX options. The VIX tends to be high when the market is extremely volatile, especially during market declines. It tends to be low when the market is less volatile, usually during extreme up moves and sideways movement. As a result, high readings usually signify too much bearishness, while low readings signify complacency. The VIX can be used to measure market sentiment. When combined with additional timing triggers, it offers the opportunity to identify market extremes and likely reversal points. The CVR III uses moving averages to measure extreme VIX readings. When the VIX moves 10% from its 10-day moving average, it has been pulled to an extreme and is likely to snap back. This has correctly predicted direction nearly 70% of the time after four-to-six days). Please be aware that volatility is mean reverting. This means volatility eventually snaps back from high or low extremes to an average level. The CVR I, II, III, and V signals were created to exploit this inherent market feature. If you would like more information on this technique, you can order Connors On Advanced Trading Strategies from the Traders Shopping Mall. ================================================================== It has worked well for me, just be aware that the signals are typically traded MOC. I use them to go into the day with some sort of bias and then added a twist to use Daily S/R levels to enter. It has worked pretty well thus far. I hope this explaination helps you.