Volatility S&P 500 IndexEducation
Using $VIX to measure Volatility in $SPY
I'm sure many of you already know VIX (Volatility Index of the S&P 500) correlates to 
SPY (the S&P 500 micro index). For those who don't and those who do, this is my up to date VIX chart. Please comment what you think! But the general idea is that...
WhenVIX goes up, SPY goes down
WhenVIX goes down, SPY goes up
This is just one of the many comparisons I take into account when trying to gain a sense of market structure. Never use just one indication or signal to determine a trade. I also like to look atSPY vs 
DXY (US Dollar). The general idea is that...
WhenDXY goes up, SPY / stocks go down
WhenDXY goes down, SPY / stocks go up
Again, its important to have multiple things indicating the SAME signal offering high conviction trade ideas. And these "ideas" should be thought of in a way of PROBABILITIES not PREDICTIONS with a predetermined set stop-loss and profit target.
Pay attention to market events and released data, especially the TIME those data reports come out. I honestly look atSPY and VIX multiple times throughout the week, I do not have them side-by-side during my active trading as they don't perfectly mirror each other on any time frame. It's meant more for a larger timeframe (1H or higher) outlook and trying to gain a broader sense of sentiment in the market.
On that note..
Happy Trading !!
- E
VIX SPY DXY
VIX (Volatility Index of the S&P 500) correlates to SPY (the S&P 500 micro index). For those who don't and those who do, this is my up to date VIX chart. Please comment what you think! But the general idea is that...When
VIX goes up, SPY goes downWhen
VIX goes down, SPY goes upThis is just one of the many comparisons I take into account when trying to gain a sense of market structure. Never use just one indication or signal to determine a trade. I also like to look at
SPY vs DXY (US Dollar). The general idea is that...When
DXY goes up, SPY / stocks go downWhen
DXY goes down, SPY / stocks go upAgain, its important to have multiple things indicating the SAME signal offering high conviction trade ideas. And these "ideas" should be thought of in a way of PROBABILITIES not PREDICTIONS with a predetermined set stop-loss and profit target.
Pay attention to market events and released data, especially the TIME those data reports come out. I honestly look at
SPY and VIX multiple times throughout the week, I do not have them side-by-side during my active trading as they don't perfectly mirror each other on any time frame. It's meant more for a larger timeframe (1H or higher) outlook and trying to gain a broader sense of sentiment in the market. On that note..
Happy Trading !!
- E
VIX SPY DXY 
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.