OPEN-SOURCE SCRIPT
VIX-Market Stress & Volatility Oscillator
VIXATA is a specialized sentiment tool designed to transform raw VIX data into a structured oscillator. By using fixed threshold levels, it identifies specific zones of market "complacency" and "extreme panic," helping traders spot potential market reversals with higher precision.
Technical Logic & Levels
Unlike standard VIX charts, VIXATA focuses on key psychological and technical levels to categorize market stress:
Level 20 (Green Dashed Line): The "Confidence Zone." Indicates a stable market where risk appetite is generally high.
Level 25-30 (Yellow/Orange Zones): The "Caution Zone." Volatility is rising, suggesting that the market is becoming unsettled.
Level 30 (Red Solid Line): The "High Stress" threshold. Historically, when VIXATA crosses this line, market fear is significant.
Level 40+ (Purple Solid Line): The "Extreme Panic" zone. These peaks often correlate with major price capitulations and long-term bottoming signals.
Technical Logic & Levels
Unlike standard VIX charts, VIXATA focuses on key psychological and technical levels to categorize market stress:
Level 20 (Green Dashed Line): The "Confidence Zone." Indicates a stable market where risk appetite is generally high.
Level 25-30 (Yellow/Orange Zones): The "Caution Zone." Volatility is rising, suggesting that the market is becoming unsettled.
Level 30 (Red Solid Line): The "High Stress" threshold. Historically, when VIXATA crosses this line, market fear is significant.
Level 40+ (Purple Solid Line): The "Extreme Panic" zone. These peaks often correlate with major price capitulations and long-term bottoming signals.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.