SETUP:
This is a setup for identifying buy signals in the market, particularly for S&P 500. The indicators we are using here are Bollinger Bands and the Volatility index, VIX.
SETTINGS:
In the chart above, I have shown two bollinger bands with different settings - one with 2 Standard Deviations from the MA and the other with 3 Standard deviations away from the MA. To get the buy signal, we will use the outer bollinger bands, which is the 3 standard deviations BB.
THE SIGNAL:
The buy signal is trigger when the S&P 500 index hits the lower band of the 3 SD bollinger band and the VIX peaks. For VIX, there is no particular level it should cross, but a relatively high peak, compared to the previous mini-peaks, will be a good signal.
THIS IS ONLY FOR A BUY SIGNAL.
This is a setup for identifying buy signals in the market, particularly for S&P 500. The indicators we are using here are Bollinger Bands and the Volatility index, VIX.
SETTINGS:
In the chart above, I have shown two bollinger bands with different settings - one with 2 Standard Deviations from the MA and the other with 3 Standard deviations away from the MA. To get the buy signal, we will use the outer bollinger bands, which is the 3 standard deviations BB.
THE SIGNAL:
The buy signal is trigger when the S&P 500 index hits the lower band of the 3 SD bollinger band and the VIX peaks. For VIX, there is no particular level it should cross, but a relatively high peak, compared to the previous mini-peaks, will be a good signal.
THIS IS ONLY FOR A BUY SIGNAL.