This indicator takes the Z-Score of the VIX and of the current ticker you are on and presents them in the format of an oscillator.
Key parts of the indicator:
A diagram of the key elements of the indicator are displayed above.
Purple Line: Represents the Z-Score of the current Ticker. Blue Line: Represents the Z-Score of the VIX Green fill line: Represents bullish divergence Red fill line: Represents bearish divergence
How to use it:
Characteristics for long entries:
- Look for recent bullish divergence (green fill line) - Look for the ticker line (purple line) to be holding above 0 (neutrality) - look for a bullish cross (purple line (ticker) crossing over blue line (VIX))
Characteristics for short entries:
- Look for recent Bearish divergence - Look for the VIX line (blue line) to be holding above 0 and the Ticker - Look for the ticker line to be holding below 0 - Look for a bearish cross (blue crossing above purple)
Some principles:
The bands represent oversold, overbought and neutral.
0 is absolute neutrality. No bias here.
Anything towards + 2.5 is considered normal, moving towards overbought (2.5 or higher).
Anything towards -2.5 is considered normal, moving towards oversold (-2.5 or lower).
+2.5 or higher is overbought. -2.5 or lower is oversold.
As always, I have prepared a quick tutorial video for your reference of this indicator:
Please let me know your questions, comments or suggestions about this indicator below.
Thank you for checking it out!
Versionsinformation
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Quick update so that the indicator defaults to the chart. I know this caused some confusion.
Also defaults to the 75 timeframe.
The 2 timeframes I use for intra-day trading is 14 and 75. I find the 75 less "noisy".
The timeframe I use for large analysis (1 hour and Daily) tends to be the 14.
Experiment as you like :-).
Versionsinformation
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Cleaned up coding. No functional change.
Versionsinformation
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Updated based on user feedback.
Now permits setting alert conditions for Bearish and Bullish instances.
Bullish = VIX is overbought (Z-Score >= 2.5) and Ticker is oversold (Z-Score <= -2.5) Bearish = VIX is oversold (Z-Score >= -2.5) and Ticker is overbought (Z-Score <= 2.5)
This indicator absolutely fails in painting, don't trust values which even repaint last 4-5 closed candles . And literally useless for crypto coins and timeframe of 1h and below .
jeanpierre67
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I also notices that indicators revise indicator prints (re-paint) on many last closed candles as well . The indicator is good but has serious signal printing issue and bug
jeanpierre67
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Thanks for indicator but I think there are some issues with blue line there is a lot of moments that doesn't update and will be flat on 0 for while I checked it on bitcoin which market never goes off . Is there a solution ?
@Steversteves, I'm seeing that it repaints. Meaning that it changes what it shows after time. Backtest it and take a look....it showing one thing, but when you delete it and bring it back it showing something different.
Steversteves
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@joseroge, Interesting, okay I will take a look and try and troubleshoot it! Thank you for letting me know!
Blblucky7
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Great work! I see that the vix line fails to extend to current price action on many crypto tickers .. any reason for this ?
Steversteves
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@Blblucky7, Yes because the vix line tracks the vix directly. The vix only trades during market hours so unfortunately it won't work during weekends/after hour sessions. But during those you can track the actual ticker on its own independent of the vix.