Volatility - VIX - Entropic Breakout
Updated
Idea for VIX:
- Testing my new Heisenberg's Uncertainty Bands indicator (HUB).
Hypothesis:
- Whenever price (time factored out) breaks out from the 5th Fibonacci level, it signals that greater volatility is approaching.
Expectations:
- As price becomes more certain (buyers and sellers agree to a level or trend), the uncertainty range of price contracts, and the certainty of predicting momentum also contracts (the uncertainty of momentum increases).
- Subsequently introducing momentum will increase the uncertainty of the position greatly.
- Uncertainty in price has contracted greatly, and momentum is likely to reverse the downtrend in a chaotic fashion.
GLHF,
DPT
Disclaimer:
We absolutely do not provide financial advice in any shape or form. We do not recommend investing based on our opinions and strongly cautions that securities trading and investment involves high risk and that you can lose a lot of money. Loss of principal is possible. We do not recommend risking money you cannot afford to lose. We do not guarantee future performance nor accuracy in historical analyses. We are not registered investment advisors. Our ideas, opinions and statements are not a substitute for professional investment advice. We provide ideas containing impersonal market observations and our opinions. Our speculations may be used in preparation to form your own ideas.
Link to my public script:
- Testing my new Heisenberg's Uncertainty Bands indicator (HUB).
Hypothesis:
- Whenever price (time factored out) breaks out from the 5th Fibonacci level, it signals that greater volatility is approaching.
Expectations:
- As price becomes more certain (buyers and sellers agree to a level or trend), the uncertainty range of price contracts, and the certainty of predicting momentum also contracts (the uncertainty of momentum increases).
- Subsequently introducing momentum will increase the uncertainty of the position greatly.
- Uncertainty in price has contracted greatly, and momentum is likely to reverse the downtrend in a chaotic fashion.
GLHF,
DPT
Disclaimer:
We absolutely do not provide financial advice in any shape or form. We do not recommend investing based on our opinions and strongly cautions that securities trading and investment involves high risk and that you can lose a lot of money. Loss of principal is possible. We do not recommend risking money you cannot afford to lose. We do not guarantee future performance nor accuracy in historical analyses. We are not registered investment advisors. Our ideas, opinions and statements are not a substitute for professional investment advice. We provide ideas containing impersonal market observations and our opinions. Our speculations may be used in preparation to form your own ideas.
Link to my public script:
Note
May 2019 to Feb 2020 for reference, with same inputs:Note
VIX has broken out of its local range:
Disclaimer
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