What is the Indicator? • The indicator is a visualization of maximum price in which the respective index can go up to in comparison with it's Volatility Index or VIX.
Who to use? • Intraday • Swing • Position • Long term Investors • Futures • Options • Portfolio Managers • Mutual Fund Managers • Index Traders • Volatility based Traders • Long term Investors and Options Traders gets the maximum benefit
What timeframe to use? • 1 Year: Position & Investors • 6 Months: Position & Investors • 3 Months: Swing & Position • 1 Month: Swing & Position • 1 Week: Swing • 1 Day: Swing • 1 Hour: Intraday & Swing
What are Upper and Lower lines? • Upper Line: If the index price reach closer to the Upper line there is a high chance of reversal to Bearish trend. • Lower Line: If the index price reach closer to the Lower line there is a high chance of reversal to Bullish trend. • This need to be confirmed with multiple levels like Daily, Weekly, Monthly etc.
How to use? • If the price reach closer to that level there is a high chance of reversal from the current trend. • To identify the reversal zone of the index. • To identify the trend. • Option Traders can Sell a Call or Put Option from that level. • Long term Investors, Position or Swing traders can plan for a Long entry. • Intraday traders can use lower timeframes to do the same.
Indicator Menu • Input VIX: Identify the VIX Symbol of your Index and type it in the box. • For example for NIFTY Index chart type INDIAVIX in the box. • Choose multiple timeframes according to your convenience.
How to turn on indicator Name and Value labels? • Right side of the screen > • Right click on the Price scale > • Labels > Indicators and financial name labels, Indicators and financial value labels
Further Reading: • Various videos and reading materials are available about this method.
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Updated on 29 May 2022
Added dots between lines.
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Updated on 31 May 2022
Updated with current Volatility levels as Lines and Labels.
The number in % is the Volatility Percentage which appear at the end of each label.
Removed the dots on lines as it looks clustered.
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Updated on 10 June 2022
Added timeframes 30, 5 and 1 minutes. Note: The gap between lines is the limitation of script. Draw a line manually to fill that for now.
Dear sir , please back test with bar replay in 1D chart. We can not pick interconnection with red and green line. Start from 5 jan 2022 data in nifty 50 .
Arun_K_Bhaskar
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@kunjmech2004, Hi, I didn't understood what you have asked. Did you mean that you couldn't distinguish the start and end point of every line? If so it is fixed.
NIRA-TRADE
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Hi Arun,
I am following you continuously and using your zone indicator which helps a lot in trading, nowadays we've every day one expiry, please let me know whether can put strangle by using this indicator and also request you to kindly update for other expiry index for Bank Nifty, Fin nifty and MID CP Nifty.
krishnakp1234567
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The lines always moving up and down sir
Arun_K_Bhaskar
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@krishnakp1234567, In live market todays level it repaints. Consider previous day levels for today, like using previous day high or low.
thiyagukarunakaran
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will it work for Commodity futures (monthly contracts)?
Arun_K_Bhaskar
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@thiyagukarunakaran, INDIAVIX is good for NIFTY50, for others it may not be accurate.