Thanks for the chart. Do you use the Powerline RSI to go long volatility also? If so, what do you look at?
BradfordFournier
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@Algyros, I've had less success pinning down lows. My other script "Trend Shift Indicator" should be more helpful
Pure_Edness
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The VIX's value is the result of a calculation by the CBOEwhich is based on the degree of volatility implied by S&P 500 index options. Unlike a stock, its condition isn't determined by buyers overbuying it or sellers underselling it. It's an index not a tradeable instrument.
@BradfordFournier, That being said, RSI may still be a good indicator for future price changes. And the above chart is for the ETF UVXY, the value of which is derived from VIX futures.
BradfordFournier
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@Pure_Edness, I shouldn't have used "overbought". -- just meant it colloquially. PRSI uses stdev and correlation.
Pure_Edness
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@BradfordFournier, Understood. While it may seem pedantic to take apart language like that, it can be helpful to be precise with our words to help get a firmer handle on the actual reality out there in the wilderness of the markets.
BradfordFournier
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@Pure_Edness, indeed. And thanks for the feedback. Always welcomed. I hope the script is useful. B
Pure_Edness
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@BradfordFournier, Had anyone traded UVXY on that your short signal when you posted this 1 day ago, they could have profited handsomely by now. Usefulness of script confirmed.