This indicator reflects the premium(+) and discount (+) on VIX futures .
HOW TO INTERPRET:
- Examines the relationship between the current VIX futures and the next VIX futures for a premium(+) or discount (-).
- When there is a discount , then you need to buy.
- When there is a premium, then you need to sell.
- The indicator works on the fact of price movement, closed candles are not required. Generates signals only if there is a real premium or discount .
- More than 80% of the time, VIX futures are traded at a premium, so UVXY and VXX most often fall due to the fact that trading providers of ETF-fund are forced to maintain liquidity.
- Helps to identify well the mid-term and long-term of VIX movement.
- It helps determine what will happen to UVXY and VXX in the near term.
ATTENTION:
- ALWAYS USE IN ADDITION TO TECHNICAL ANALYSIS!
- ALWAYS COMPLY WITH RISK-MANAGEMENT AND MONEY-MANAGEMENT!
Kind regards, Baro Virtual!
HOW TO INTERPRET:
- Examines the relationship between the current VIX futures and the next VIX futures for a premium(+) or discount (-).
- When there is a discount , then you need to buy.
- When there is a premium, then you need to sell.
- The indicator works on the fact of price movement, closed candles are not required. Generates signals only if there is a real premium or discount .
- More than 80% of the time, VIX futures are traded at a premium, so UVXY and VXX most often fall due to the fact that trading providers of ETF-fund are forced to maintain liquidity.
- Helps to identify well the mid-term and long-term of VIX movement.
- It helps determine what will happen to UVXY and VXX in the near term.
ATTENTION:
- ALWAYS USE IN ADDITION TO TECHNICAL ANALYSIS!
- ALWAYS COMPLY WITH RISK-MANAGEMENT AND MONEY-MANAGEMENT!
Kind regards, Baro Virtual!