Thank you! Question for you: when the VIX breaks the resistance or support levels, do you want confirmation with a 30 minute candle close above/below that level or should you wait for a higher time frame?
The main thing I monitor is the correlation between ES (final upside/downside target) and VIX (support/resistance) for potential confirmations and divergences immediately upon breaking.
If ES breaks its final downside target and VIX breaks its resistance (confirmation), that's the only confirmation I need to be cautious buying the dip. If ES breaks its final downside target and VIX has not breached its resistance (divergence), that's a piece of information to be cautious shorting in the hole etc.
I would like to emphasize that while the correlation between the ES and VIX levels is a very useful tool for measuring market strength and weakness, it should be utilized in conjunction with your own strategies and not relied upon solely.
Hi Smash. I'm one of the subscribers who found useful your VIX levels, yesterday Thursday 11 January: ES_F support zone ~ 4776 VIX >12.33.
I'm attaching your useful and actionable answer to my question about VIX 11.74 - ES_F ~4728.
You wrote:
" I don't know whether it will break or not. That's not really important for me. The main thing is if ES is above 4825 and VIX below 11.74, I will be cautious trying to fade a potential upside continuation. It's worth noting that 11.74 is a level that I monitor for this week only. "
Super helpful chart on the ES VIX correlation and how to look at the convergence/ divergence :) appreciated
Thank you! Question for you: when the VIX breaks the resistance or support levels, do you want confirmation with a 30 minute candle close above/below that level or should you wait for a higher time frame?
The main thing I monitor is the correlation between ES (final upside/downside target) and VIX (support/resistance) for potential confirmations and divergences immediately upon breaking.
If ES breaks its final downside target and VIX breaks its resistance (confirmation), that's the only confirmation I need to be cautious buying the dip. If ES breaks its final downside target and VIX has not breached its resistance (divergence), that's a piece of information to be cautious shorting in the hole etc.
I would like to emphasize that while the correlation between the ES and VIX levels is a very useful tool for measuring market strength and weakness, it should be utilized in conjunction with your own strategies and not relied upon solely.
Thank you, buddy! Another exceptional day, and your DEC levels were again at play.
Thank you Smash! Excellent work!
Hi Smash. I'm one of the subscribers who found useful your VIX levels, yesterday Thursday 11 January: ES_F support zone ~ 4776 VIX >12.33.
I'm attaching your useful and actionable answer to my question about VIX 11.74 - ES_F ~4728.
You wrote:
" I don't know whether it will break or not. That's not really important for me. The main thing is if ES is above 4825 and VIX below 11.74, I will be cautious trying to fade a potential upside continuation. It's worth noting that 11.74 is a level that I monitor for this week only. "