The VXN Index is a Volatility Index to estimate expected volatility of the
NASDAQ 100, It is calculated using the midpoint of RTH Real Time NDX
option bid/ask quotes.
The Range is quite clear, we are approaching the bottom of the range.
Probability is advancing into a clear SELL signal.
NQ trading for success requires a close monitoring of VXN, everything
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This chart is looking more bullish than the VIX. The reason being is it has set a higher high and a higher low. Now we just need to determine if this break of the trendline is a breakout or a fakeout. Only time will tell for that. We would need to see a close above the trendline to determine that this is a breakout.
VXN at the daily view.
This is a project that my trading team and I are conducting. This is 3 of 9 charts (available on Trading View) that searches for clues for an imminent correction by using both June and September 2020 cases. It's a comprehensive overview that connects the charts volatility, trends, divergences, credit, and currency strength.
In this chart,...
VXN at the daily.
The VXN refuses to close below 25. According to the PCQ, the P/C ratio for the NQ is at 0.62. With that many calls on the NQ, the VXN is recognizing this as excess greed.
What's stopping the VXN from really acting out? High liquidity or a lot of available cash below.
So as long as liquidity remains strong, the VXN will only make small jumps...
VXN at the 4 hour. I realized what I did wrong. It's been so long since I updated the VXN that I forgot to add in another channel line below.
Whoops. Well, this means that either a volatility jump (more like a bunny hop) will either be within the next two days... That's if the VXN can reclaim that first support. If the first support is not reclaimed, then the...
The VXN right now is priming up for a small jump. The projected jump should be within the next 2 days. Maybe Thursday. That said, if it cannot retake that support above, then the projected jump may be delayed until next week. It's why I have multiple support lines. The VXN acts as my "hourglass" of how long do I have before I exit my long positions.
VXN at the 4 hour view.
It's been a while since I've done the VXN. It's no coincidence that when the VXN was sitting on supports, then NQ was primed for a pullback.
From where the wedge is now and where the supports are, the projected volatility jump for the VXN is around August 17-19. If this sounds familiar, it's the same projected date range for the VIX and...
This is the NQ's VIX (VXN) at the 4 hour view.
The VXN is still trapped in its wedge and finally moving on to the lower supports.
That said, the VXN is also playing the volatility dance. It's making several small volatility jumps to build up for a bigger one. With the VVIX closing above 105, the VXN and VIX are saying that they're not done quite yet.
This is the VXN at the 4 hour.
The VXN's minor support is still holding much stronger than I anticipated. I was expecting the second support.
We are nearing the end of this wedge. The VXN is warning that a pullback may be imminent in the NQ. The NQ might get one last pre-earnings hype bounce. However, the VXN is providing clues that a pullback will happen...
VXN at the 4 hour view. The VXN was stopped due to high liquidity in the markets right now.
Unlike the VIX, I do not expect the VXN to reach flag support (dashed green line) any time soon. NQ has reached a top from July 13th. How long will this top last? Most likely for the rest of the summer. Will it be THE top? I don't know.
There are so many calls in the NQ...
This is the VXN at the 4 hour view.
Okay. I was wrong. I thought the volatility run would be early next week. The VXN tested support early this morning and then found that support. It created a double bottom pattern and started running. It's fighting against the high liquidity.
Personally, I am happy that volatility is coming back. Chaos and panic to a group of...
As I mentioned in my VIX post, liquidity is high. There is so much available cash now that it's drowning volatility runs. It sucks because volatility provides opportunities. Fear provides discounts on stocks and ETFs. Chaos in the market brings more opportunities.
Judging by the price action, the VXN is about to test support again. Volatility will most likely be...
This is the VXN at the 4 hour. The VXN found support once again in that green zone of mine.
It shouldn't be that big of a surprise. The P/C ratio for the NQ was at 0.37 this morning. That means there were so many calls from small traders that it was exhausting the supply of buyers. That aggravated the VXN at first.
When the supply of buyers ran out, the...
NQ's VIX (VXN) closed higher today. Usually, if the NQ goes up, then VXN goes down. That's the usual method.
The other reason why a VIX would rise is because there are SO many calls by retail traders at a lightning fast rate. The VXN would recognize this as a buying climax.
The NQ entered into a pre-earnings hype rally. This seems like a good set up for a decent...