India Volatility Index - VIX

[shankie14]

Hi - Can any of the esteemed members tell me about the basics of VIX and how to interpret the number.
Also how does one use vix in technical analysis?
Thanks for the help

 

[Linus]

Hi - Can any of the esteemed members tell me about the basics of VIX and how to interpret the number.
Also how does one use vix in technical analysis?
Thanks for the help

Hello Shankie,

Please see this link

ss

 

[shankie14]

Sunil -A big Thanks - really helpful article

 

[beginner_av]

Hi - Can any of the esteemed members tell me about the basics of VIX and how to interpret the number.
Also how does one use vix in technical analysis?
Thanks for the help

Dont bother, its all junk as of now.

 

[dhakkan]

Sunil, Thanks... It does makes life little more comfortable in options..

 

[Linus]

Sunil, Thanks... It does makes life little more comfortable in options..

Thank you Dhakkan ,

But according to the seniors here, the VIX has become junk, so let's not talk about it as we have become junk ourselves ! Some other day, some other time. The world is too small.

ss

 

[Linus]

Request to Traderji -

Will you please close this thread as the very subject has become junk and why not ? - it saves a lot of bandwidth for you and makes a way for a more insightful posts on system developement, quants, statistics etc which only a handful of people understand.

Thank you,

ss

 

[rpc]

Dont bother, its all junk as of now.

Hi
Will you pls clarify why it has become junk.Also pls enligten us on any other indicators which could be used in place of VIX
with best wishes
rpc

 

[raosrinivas]

one man's junk is another man's treasure. while i do not read this thread regularly , just because someone does not like a particular thread it is not a good idea asking the thread to be removed. i may have similar view regarding day trading threads , can i ask them to be removed ? on what basis ? forgot to add once people start posting it becomes collective thread

 

[kkseal]

BAV probably means that there aren't enough data points available for the VIX as of now to make decisions based on historical values/averages. Like for the Dow the VIX usually peaks around 40 but one cannot arrive at any such value for the Nifty VIX yet as there's not enough historical data available. Similarly long-term avgs for the same is non-existent as of now.

However certain things can still be done - like plotting a Ob/Os indicator based on the VIX values. Mkt moves & VIX moves are generally inversely related so the said indicator can signal possible mkt turns (with all the usual limitations though that such indicators have. Someone might also ask why bother doing this on the VIX when it can be done on the NIFTY itself)

Regards,
Kalyan.