VXX trade ideas
VIX Breakout Long! Buy!
Hello,Traders!
VIX retested a support level
Then made a rebound just as I predicted
And now we are seeing a bullish
Breakout out of the wedge
So I am now bullish biased
And I think the price will go up
Buy!
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See other ideas below too!
VIX: long vol?A price action above 21.05 supports a bullish trend direction.
Crossing below this level will negate the bullish stance.
Further bullish trend support above 22.55.
Increase some exposure for a break above the 23.50 resistance.
Decrease some exposure for a break below the 21.85 support.
Target set at 25.95, which is at the 200-day simple moving average, which might act as major resistance.
Volatility Rally | Major Demand ZoneThe Volatility Index (VIX) has been in a historical downtrend the past weeks / 2 months! VIX has also been moving abnormal in relation to the S&P 500 Index which it tracks Volatility in.
The Volatility Index has sunk to a major demand zone, and is now breaking back out of the area.
After hitting Lows of around $19 the VIX is breaking out upwards. We are seeing a dump in the markets from major S&P Bear Market Trendline as well.
Bears are stepping in at these levels in the markets, and the volatility index is rising, signaling further downward movement coming in the market.
Simply put, the Volatility index is breaking out from its Major Demand Zone, and generally if history repeats will rally up to the supply zone up around the $30 level. This has been a typical swing move in the index since the beginning of 2022.
Reasons VIX looks bullish :
- TTM Squeeze (Daily & Weekly)
- Reclaimed Daily EMA Cloud
- Market Rejecting Major Trendline (S&P)
- Cup & Handle on VIX (1hr / 1D)
- Double Bottom
- Market Greed
- CPI & FOMC coming up
How to play :
$UVIX commons
$VIX option calls
etc.
There are multiple reasons Volatility is rising currently, and Technicals back this thesis up strongly.
I hope you liked the though!
🔥 The VIX Is Signaling That Bitcoin Will FallIf you've followed me for a while, you know that sometimes I look at the VIX (the SP500 volatility index) to forecast future price movements in crypto. If you're new to the VIX, please take a look at the post below for more info.
As seen on the top part of the chart, the VIX has been trading inside a channel for around 9 months now. Every time the VIX saw a strong reversal in trend, a further decline in BTC's price swiftly followed.
As of this week, the VIX has yet again bounced from the bottom support of the channel. If we look at historical VIX trend changes, I'm expecting more bearish price action in the near future.
On average, BTC's drop after a major VIX trend reversal has been around 25%. This would mean that BTC will move from $17,000 to around $12,750. Naturally, this is very speculative, but it gives us a nice area to keep an eye on.
Market Update 12/05/22: VIX FocusedIm too lazy to put timestamps in for this video. The first 4 minutes I go over the VIX and what I expect moving forward.
The market is kind of wonky so maybe anything can happen.
Long story short, last week the VIX hit two big targets: 19.8 and 19.08. I think we may stay in this area before moving up as long as we start the week somewhere slightly above 20.37. Though the VIX looks more bullish than bearish at the moment.
VIX can be a good tool for crypto tradingThe VIX ( Cboe Volatility Index ) is objectively considered the best volatility index in the U.S. market. Increasing values indicate increasing volatility, decreasing values indicate decreasing volatility. Thus, near particularly important events, the VIX tends to rise while it tends to fall near periods considered objectively calm for the markets.
Bitcoin historically has a correlation index greater than 0.6 with the NASDAQ whose volatility is well represented by the VIX . It is therefore simple to conclude that a correct volatility index with regard to the crypto world may be the Cboe Volatility Index ( VIX ). This is because altcoins are correlated with BTC with an index above the average 0.9.
So when the VIX goes up it is presumable to expect major movements for the crypto sector as well, conversely there will be flat calm for low values. Traders who work through volatility with reversal or range strategies should wait until the VIX reaches values above 30 points to trade. Conversely, those working with directionality might be wise to wait for values below 20 to set up intraday trades.
Volatility S&P 500 Index, Daily, The Upcoming Market Crash?I think that in mid-November we may be dealing with a stock market crash. Let's take a look at the volatility index of the S&P 500 stock index. The analogy of 2008 has been fulfilling almost perfectly so far. If it continues, the price should completely fill the gap and rebound from the green zone. If we break the red zone, I would expect a rebound from the newly created flip zone (gray box on the chart) and a dynamic increase in volatility. Volatility means big drops or big gains. In the current macroeconomic situation, it is difficult to think about dynamic increases, especially this winter. The potential trade on VIX to rebound from the green zone and break through the peaks from March 2020 has as much as a 20:1 risk-reward ratio (SL under the zone). I am sure there will be even more great opportunities for this scenario on shorting, i.e., SP500, Nasdaq 100 or DAX.