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As nifty tests (and probably is to move further down) India VIX appears to have bottomed out.
This suggests volatility spike is very likely to happen from here onwards.
VIX spikes lead to gap openings and large candle formations intra day.
There is a high probability that VIX could test 18 & 20 if it sustains above 16.
While it gives fantastic yields when on the correct side of the trend (on a particular session) it can hurt much more if you are on the wrong side of the trade due to gap openings and faster breaks of support/resistance.
Conclusion reduce your derivative exposure for overnight trades and as always keep a stop loss in the terminal and respect it
Save Capital
As nifty tests (and probably is to move further down) India VIX appears to have bottomed out.
This suggests volatility spike is very likely to happen from here onwards.
VIX spikes lead to gap openings and large candle formations intra day.
There is a high probability that VIX could test 18 & 20 if it sustains above 16.
While it gives fantastic yields when on the correct side of the trend (on a particular session) it can hurt much more if you are on the wrong side of the trade due to gap openings and faster breaks of support/resistance.
Conclusion reduce your derivative exposure for overnight trades and as always keep a stop loss in the terminal and respect it
Save Capital
Online courses on Harmonic Trading Patterns, Ichimoku & Trading Psychology Risk Management
t.co/3mGWp29Xkb
t.co/3mGWp29Xkb
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Online courses on Harmonic Trading Patterns, Ichimoku & Trading Psychology Risk Management
t.co/3mGWp29Xkb
t.co/3mGWp29Xkb
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.