How Can You Determine The Change of Market Trend In About 70% of Cases Using VIX?
Consideration of the VIX strategy developed by Larry Connors.
VIX or Volatility Index S&P 500 can be used by you to coordinate the position’s opening with the market. In this article, we’ll consider another temporary strategy developed by Larry Connors, which has become known as Connors VIX Reversals. It’s used to determine when the entire market (S&P 500) will likely unfold in the opposite direction. Always remember this indicator and use it in addition to your ongoing strategy.
What is the Volatility Index (VIX)?
The volatility index (VIX) measures future volatility. It provides an excellent indication of the level of fear and greed on the market.
Volatility always seeks to return to its average values. This means that periods with high volatility will ultimately be devastated to their average value. Conversely, periods with low volatility, sooner or later, will rise to medium weights.
High figures usually indicate the oversold of the market, and we need to look for opportunities for opening long positions. Low numbers usually occur during market overboughtness, and we focus on short sales. We always work against a market crowd!
