Volatility Index fractal?On the above 1-day chart price action on the Volatility index finds support on previous resistance. The last time this occurred the markets crashed hard back in February 2020. Is history about to repeat itself?
If history is about to repeat it might be an idea to have a good cash position over the next couple of months. Gold & Bitcoin are/were not an option.
VOLATILITY trade ideas
Bitcoin / stock market verus volatilityA follower brought this to my attention on another idea, thought worth sharing.
Volatility. The above 2-day chart compares the volatility index with Bitcoin price action. It is such a fantastic indicator for risk assets.
The orange line is Bitcoin price action, The purple circles circle show spikes volatility with Bitcoin price action. Isn’t it fascinating?
Spikes in volatility are always matched with bottoms in price action. Look left.
Here is another chart showing PUT/CALL ratio versus BTC price action. PUTS are people going short on the market, with money they don't have. (Don’t do leverage people).
You can see every single time without fail when the majority of market participants go short we have a bottom in Bitcoin price action. It never fails.