Chart speaks for themselves. All you have to do is to know their language.
VIX indicator is seems like RSI but its smoother signal (I guess).
Bullish Pattern
- Identify the Peak that below 30 Threshold (which is A)
- Identify the Trough that breached (or near) the -30 to -50 Threshold. (which is B)
- Draw a trend line from A to B and extend this lines.
- Wait for Bounce of Extended lines. (which is C)
if you notice the Trough of B and Tough of C creates a Bullish Regular Divergence (which is Double Bottom)
Long Entry
When the VIX Indicator creates upward slope. (for safe entry crosses the zero line from negative reading to positive reading)
Exit
I use Volume Analysis to exit the trade. visit the sonic R/PVSR thread in forexfactory this concept
Bearish Pattern
Bullish Pattern
- Identify the Trough that above -30 Threshold
- Identify the Peak that breached (or near) the 30 to 50 Threshold.
- Draw a trend line and extend this lines.
- Wait for Bounce of Extended lines.
Short Entry
When the VIX Indicator creates downward slope. (for safe entry crosses the zero line from positive reading to negative reading)
Exit as Same Above
Risk Management
I use PVSR Position Sizing Concept with Naningbob Sizing Concept.
example
If I have 1000 USD capital. my allowed position size is 0.01 lot.
If my market against me by 200 pips.
I will add another is 0.01 lot.
If my market against me by another 200pips.
I will add 0.02 lot.
If my market against me by another 200pips.
I will add 0.04 lot.
its only applicable to Swap Earned Pairs
for strict scalping rule. I will set my SL to 100 pips.
I’m not a genius. I just reversed engineered the concepts that I read.
sorry to say, VIX Indicator is not available for download yet.
(I need someone to teach me a converting from mt4 file to ex4 file)
as soon as converted it to ex4 format. I will share with you this indicator.
Disclamer: I’m not yet trading live because I’m in testing phase/demo trading now (after 1 1/2 years of research phase >_<)
I hope that you can apply my concept with own technical readings.
DREi
