Aids in identifying changes in direction.
EDIT: just noticed that URL is now password protected. The concept from the author is simple: use and smoothing of the VIX as two signal lines. When they cross you have a change in VIX direction. I simply coded that for SPYIX which is a slightly different (but theoretically similar) index vs VIX . SPYIX provides intraday updates without a subscription so this indicator can be used for intraday tracking.
study("SPYIX EMA", overlay=false) VIX = security("SPYIX",period, close) // variation on idea found here using SPYIX from BATS instead of VIX // from https://marketsci.wordpress.com/2008/07/28/the-vix-is-very-predictable/ // published example here -> https://www.tradingview.com/v/LrCG2SpT/ // it is a start but doesn't find bottoms / tops. length = input(11, minval=1) vixema = ema(VIX, length) vixsma = sma(VIX, length) bgcolor(vixema >= vixsma ? black : white, transp=80) plot(vixsma, color=white) plot(vixema,color=red) plot(VIX,color=yellow)