DCA VIX Fear GaugeThis indicator displays the CBOE Volatility Index (VIX), known as the "fear gauge," in a separate pane below your chart, scaled to provide a comparable view to price movements.
It assists in gauging market sentiment: elevated VIX levels often reflect heightened fear and volatility, while lower levels indicate complacency.
The line dynamically changes color based on VIX thresholds (green for low volatility (<20), orange for moderate (20-30), and red for high fear (>30)) offering visual cues for potential market shifts or trading opportunities (e.g., high VIX may highlight panic-driven dips in equities).
Usage : Suitable for indices like SPX or forex pairs. Optimal on daily/weekly timeframes; VIX updates during US market hours.
Inputs : 'Scaling Lookback Period' fine-tunes alignment with price data (higher values for broader context).
Limitations : VIX represents implied volatility for the S&P 500; data may hold steady on non-trading days. For informational use only (integrate with additional analysis).
Tested on: SPX, NDX (scales automatically to fit the pane).
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