Volatility Indices Analysis (VIX10/VIX50/VIX75)Knowledge Required to nail these synthetic index pairs:
1, Good understanding of price Trend/directions
2, Absolute respect for Supports and Resistances
3, Knowledge of candle stick patterns
4, Discipline to use partial TP, SL
5, Discipline to wait for confirmations and only act when required
See the video for deeper understandinbg of VIX pairs.
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Vixfutures
Increase in VOLATILITY on the horizon? It's 1120am MST on 2/28, and I am expecting a further market decline. I already have a VXX call option in play right now and am expecting this position will end up in the money.
It seems Russia/Ukraine war is starting to heat up despite the meeting between the two countries today.
From a technical analysis perspective, there is another inverse head and shoulders forming and the 50 SMA is crossing over both the 100MA and 200MA, which seems to be a bullish indicator for VXX and a bearish indicator for the stock market as a whole.
I hope I am wrong on this one...because that would indicate a de-escalation of the war...which we're all praying for.
HEDGE your BTC and ETH positions... VXX is about to MOON?!!!In my opinion, buying a VXX weekly call option is an amazing way to hedge your crypto portfolio against the market volatility resulting from geopolitical and macroeconomic concerns.
Unless you live under a rock, you've reeceived incessant push notifications regarding the Russia/Ukraine geopolitical conflict and the inflation-driven macroeconomic concerns.
Smart money has already reallocated a sizable percentage of portfolio into stablecoins or cash... But why not CAPTURE ALPHA available from the current market volatility?
Inverse head-and-shoulders patterns are used by some traders to call a downtrend reversal. It's not always a reliable indicator. However, it's my belief this indicator is MORE reliable on the with VXX chart- which is perpetually in a long-term downtrend.
Look closely at the VXX chart, and you'll see TWO inverse head and shoulders patterns:
1. One forming locally over the past couple weeks
2. One that started forming at the end of January
I bought a weekly call option expiring on 2/25 with a strike price of 24. With a target of around 26.50, I'd be shocked if I didn't close this position, or have it expire, IN THE MONEY.
Do YOU AGREE or DISAGREE? Let me know in the comments!