markrivest

How to Use the VIX to Find Stock Market Tops

TVC:VIX   Volatility S&P 500 Index
109 0 6
The VIX             is a great tool to find SPX             bottoms, especially if you use Bollinger Bands with the VIX             .
Note how the SPX             is at or near a bottom when the VIX             spikes above the upper Bollinger Band .

Finding SPX             tops is different. Many traders mistakenly think that when the VIX             is reaching a bottom it signals an SPX             top. Most of the time the VIX             will need at least one divergence to signal an SPX             top. Note the August 15th SPX             top had a small VIX             divergence. This phenomenon works on a larger scale as the SPX             is higher in November while the VIX             is also high.

As of November 23rd there's still no VIX             divergence for the rally that began on November 4th. There is however a developing VIX             divergence on the intra day chart which I will illustrate in my next post.

Mark
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out