VVIX trade ideas
[VVIX/SPX] Sitting Exactly On Dec & Jan Peak DT S/R!And also the Feb gapup downtrend S/R (magenta). The horizontal S/R below it (green).
Another reason VVIX has limited downside but massive upside, also coming up on March peak downtrend S/R (purple) for what should be a pretty powerful wedge as Ratio squeezes down against the converging horizontal and uptrend S/R (white).
OG idea Aug 29th:
[VVIX] Holding Back UVXY Like it Bout to Brawl... WATCHOUT!VVIX is the reason UVXY is staying low, this 6M downtrend channel is very comfortable for Price Action but it is gradually grinding away into the long term horizontal supports as well as the 1.5Y upchannel which has the most Price Action by far of all the up and downchannels.
VVIX can only go so low so the horizontal and uptrends have much more power in this dynamic meaning it's always the downtrend S/R that loses the battle.
Right now the most powerful upchannel is merging into the most powerful downchannel and Price should spike upon breaking above these major S/R market wedges in addition to the falling wedge here, which is likely the catalyst leading into HH peaks after breaking above each ensuing market wedge after that.
To add fuel to the fire, light blue is the strongest downtrend Core S/R and in this case acting as a powerful support to launch from as VVIX transitions from the downchannel to the upchannel.
Inspired by Aug 16th OG idea:
[VVIX] No One is Prepared for the VVIX Spike.. Will Launch UVXY!VVIX got caught on 6M downtrend S/R and has gone subterranean below Rock Bottom haha.
VVIX down, SPX up and UVXY holding steady is terrifying for markets and fckin gold for volatility traders.
The volatility markets are supposed to work roughly in tandem and when VVIX increases so will UVXY.
Given historical Price Action a move to 120 would be a piece of cake here (let alone the potential upside beyond that) and launch volatility markets like crazy.
As I've said repeatedly VVIX can not hold this low, it's VERY uncomfortable being below the falling wedge in these uncertain times and aching to snap back into a more comfortable range.
VVIX spike will likely coincide with SPX getting rejected by Downtrend Peak Channel...
Markets simply can't go much higher with VVIX this low already.
[VVIX] At Rock Bottom Wedging Against Core 6M Downtrend S/R!With VVIX hitting rock bottom on Friday and VIX/UVXY remaining elevated 20%, there is tons of juicy upside potential. I made slight adjustment to the falling wedge here based on Friday's price action.
Today Price gravitated right back to the very strong white horizontal S/R and it's wedging more and more under the core 6M downtrend S/R (light blue).
This wedge gonna pop by mid-oct, it simply has no place left to go!
[VVIX] I'm Not Just Pullin This Out My @$$ People!It's resting exactly on the bottom of that very powerful long term S/R trend channel and wedging up right against the 6M downtrend S/R.
It almost exactly cleared the entire downtrend channel (it got a little stopped up by the white horizontal S/R) before coming to rest right atop the yellow line.
This has got to bounce up people, it just can't stay this low much longer. It's itchin' to get out of this channel and under is just a bit uncomfortable for it in this economic and political climate.
[VVIX] Bouncing Off Bottom of 2Y Uptrend ChannelThis channel has the most Price action by far and Price is stuck right at 2Y uptrend channel bottom and 6M downtrend channel with the 2nd most Price action after the one right below.
Price likely to continue climbing yellow uptrend channel, white is max low here for the near term. Upside potential is 4 white horizontal trend channels.
Volatility trendI made this VVIX/VIX chart a few days ago and drew a few resistance channels, which have been tested a few times in the past weeks. Today's volatility spike marks a major breakout.
Quite the bear signal. 180 billion in AAPL value wiped out today, many more billions gone throughout tech. Is the bubble pop complete? Let's see what Friday holds. September starting off pretty grim, but as a fundamental bear this is what I've been waiting for.
VVIX Divergences 9/6/2020VVIX at the daily view.
This is a project that my trading team and I are conducting. This is 2 of 9 charts (available on Trading View) that searches for clues for an imminent correction by using both June and September 2020 cases. It's a comprehensive overview that connects the charts volatility, trends, divergences, credit, and currency strength.
In this chart, the VVIX had RSI divergences and a bullish divergence between the VIX and VVIX . The VIX was in a downtrend, but the VVIX was flat. In addition, the VVIX created 3-4 higher lows in a row (minus the algorithms' morning support test) prior to a correction.
[VVIX] EMA Model... Narrow BB Could Spell DOOM for Market!Given the nature of volatility markets, periods of stability (and narrowing BB) will necessarily always be followed (eventually) by a big volatility explosions (expanded BB) but rarely do the EMA 89 and 337 cross above the BB.
These cross events have occurred 3x since 2016 and each time we saw increasingly HH volatility peaks at roughly the half month, 1.5 months and 3 months intervals thereafter.
This could be one hell of a Frankenstein Fractal or pure happenstance but we'll find out soon! B)
[VVIX/SPX] Volatility Ratio Encore: New Perspectives = More $$$The volatility landscape is getting clearer with each passing day.
It seems my first Volatility Ratio chart of VIX/SPX broke some interesting ground. Managed to pull my first Editor's Pick.
In order to further refine our Volatility Trading Strategy here we must expand and find other major S/R from as many angels as we can.
VVIX is the next logical choice.
Whenever the ratio breaks under the major support the price tends to swing down and back up, this recent swing low was due to breaking the 7Y green support line Aug 21st.
It dropped all the way down to the next green support and bounced back up to touch the 1Y blue uptrend S/R and fell down to the 8Y red downtrend S/R. These lines were mapped at the 1W scale.
We are getting wedged down under the blue, green and yellow into red. This also aligns with a early Sept volatility movement. Most likely that will be a sustained break above green that triggers a spike up to the next yellow downtrend and possibly up the blue uptrend.
OG Volatility Ratio:
[VVIX] Microcosm Analysis: Price Right at Top of DownchannelPrice fell pretty deep through the white and green S/R all the way to the bottom of the downchannel where it bounced and shot right back up to the top of the downchannel and landed in the middle of the blue local support channel.
Would need a lot of power to close under the green and white S/R.
[VVIX] Things Getting Interesting... Volatility Spike Fractals?Shifted my OG fractal and found a potential new and better one aligning with early June.
Strong white horizontal S/R holding well.
As with UVXY, whether we spike soon or not, Price will still get wedged especially hard early October between purple and white and in this case under green too. Prime time for a upside breakout.
Happy harvests! B)
