Synthetic VIX
Does it just measure the volatility of the single market you plot it on the chart for? So if you plot the euro, it will only plot the vix for the euro?
I think that's what you are saying you don't want to answer because you don't know =)
Yes, it only measures the volatility for a single, given market. If you apply it to the EUR/USD, you'll get the volatility at that given point in time of the EUR/USD.
What I won't answer is how to use it in trading. I haven't studied any VIX techniques for the S&P, so I don't have any knowledge to translate to a Faux VIX indicator, such as this. I *DO* know that there are many index futures traders who know how to use this type of an indicator, however. If anyone actually has some techniques, please post them in this forum. VIX is generally more for shorter timeframes as I understand it, but who knows...it might be good for longer time frames as well. I just saw how well this thing mimicked the real VIX in Active Trader and thought it might prove useful to someone who *does* know some VIX techniques.
Well in my experience it's good to measure the standard deviation of the vix to determine when the market is full of fear (volatility). You could superimpose bollinger bands on it and observe, on any timeframe, I believe the longer the better, when the vix crosses through the bollingers. On dailies signals are clear as day.
a daily chart.
if you can stomach the swings it's the way to look at this indicator set imo.
it seems that the bbrsi i posted is not quite normalized for the synthetic vix. anyone care to take a stab at correcting it?
bbrsi was created by Igorad for our forum 2 years ago. It is here https://www.mql5.com/en/forum/173281 (mql4 code).
Some threads whioch can be usefull to select the indicator:
Hi New Digital,
I already have these indicators and have used them for quite along time. I was implying that the range of the vix indicator superimposed does not match up perfectly the same way the bb and rsi do in the indicator you directed me to. Another version needs to be made for it to work correctly as I posted above.
It is different scale for 2 indicators in one separate window.
Those 2 indicators must be re-coded to be 1 indicator with 1 scale.
hi, can this indicator be in an oscillator form? thanks.
VIX indicator comming soon...
I am creating a vix indicator to be used with 1H, 4H, and daily metatrader charts,
which is fed from the daily VIX data by CBOE.
You would get it soon in Handling Forex with Metatrader
Regards,
Mestize
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Enclosed is an indicator I coded up based upon an article in the December 2007 issue of "Active Trader" magazine. The article was titled "The VIX Fix," by Larry Williams, and describes a formula that (quite accurately) mimics the VIX indicator on markets other than the S&P 500.
If you ask about how to use this indicator, or about any specific techniques, I won't answer since I hadn't actually use the VIX before (I've only traded FX). The VIX (Volatility IndeX) measures the amount of volatility in the S&P 500. Similarly, the Synthetic VIX measure the volatility of (in this case) FX.
-MRE-