VOLATILITY INDEX
WE TRADE 4 TYPES OF VOLATILITY INDEXES
- VIX 75
- VIX 50
- VIX 25
- VIX 100
WE USE THE SAME STRATEGY TO TRADE THEM ALL
THE MINIMUM DEPOSIT TO TRADE THEM ALL IS 10$
THE MINIMUM LOT SIZE ON ALL IS 0.01
THEY ARE ALL FOUND ON BINARY COM, UNDER THE SYNTHETIC INDICES ACCOUNT ON MT5
The strategy
- Vix is simple
- It moves with a straight line shaped movement from top to bottom
- It moves with m and w
- Vix always manipulate many forex patterns and knowledge like support and resistance, flags and edges etc
- So do not use those on vix
- Here we use m and w plus rejections
- We also use the trend
- We trade on 15 min chart , 4 hour chart and the daily chart
- We also use escalpando indicator for points reversal scalps we also use lower lows and higher highs , v formations inline with the trend
LONG TERM TRADES (SWING TRADING) FOR SELL TRADES
- First check the daily chart
- Wait for the daily chart to reach its highest point
- To see the highest points , escalpando indicator will be overbought ,
- THE MARKET WILL START ISSUING OUT REJECTIONS
- THERE WILL BE M FORMATION OR INVERTED V FORMATION
- IF THERE IS M FORMATION , FIRST LEG SHOULD HAVE A REJECTION
- SECOND LEG SHOULD ALSO HAVE A REJECTION
- IF THERE IS AN INVERTED V FORMATION ,
- THERE WILL BE A REJECTION FOLLOWED BY A RED CANDLE
- AFTER CHECKING THE DAILY CHART , SWITCH TO 4 HOURS CHART
- CHECK IF YOU SEE THE ABOVE MENTIONED
- IF YOU SEE THEM , SWITCH TO 15 MIN CHART
- WAIT FOR A PERFECT REJECTION UP[WARDS THEN TAKE A SELL
- AFTERWARDS HOLD FOR 3 TO 5 DAYS
- SINCE VIX MOVES ON A STRAIGHT LINE MOVEMENT ,
- YOU CAN KEEP ON SELLING
- ONLY KEEP ON SELLING WHEN YOU SEE MORE RED CANDLES
- WE HOLD FROM OVERSOLD TO OVERBOUGHT
- WE HOLD ON 15 MIN CHART
- AND EXIT ONCE WE SEE BUY SETUPS
SELL TRADES CONTINUE
- NOW USING M FORMATIONS TO TRADE
- WAIT FOR VOLATILITY TO BE OVERBOUGHT ON DAILY TIME FRAME OR 4 HOURS CHART
- WHEN THE MARKET IS OVERBOUGHT NOTHING SHOULD BE ABOVE THE CURRENT CANDLE
- MEANING THAT THERE SHOULD BE NO CANDLES ABOVE THE CURRENT CANDLE
WAIT FORM A PERFECT M FORMATION TO FORM
- THE M SHOULD HAVE REJECTIONS ON BOTH LEGS AND IT SHOULD BE CLEAR
- AS SOON AS THE SECOND LEG HAS FORMED ON HIGHER TIME FRAME ,
- SWITCH TO 15 MIN CHART
- WAIT FOR A NICE REJECTION UPWARDS AND SELL
- HOLD FOR 3 TO 5 DAYS
- KEEP SELLING ONCE YOU SEE MORE RED CANDLES AS VIX ALWAYS MOVE ON A STRAIGHT LINE
EXAMPLES
• Pictures below shows the m shapes of volatility index on higher time frame
• Then we switched to 15 min chart and checked available entries
• We found m formation too and took a sell
• It clearly shows where to sell with arrows
• The pictures also shows you that volatility moves straight down with a straight line motion
• After the second leg of has formed , you can switch to small time frames and sell
• Remember to keep on selling
USING INVERTED V FORMATION TO TRADE
- WAIT FOR THE MARKET TO GO UP AND BE OVERBOUGHT
- WHEN THE MARKET IS OVERBOUGHT NOTHING SHOULD BE ABOVE THE CURRENT CANDLE
- MEANING THAT THERE SHOULD BE NO CANDLES ABOVE THE CURRENT CANDLE
- WAIT FOR THE LAST CANDLE TO REJECT UPWARDS THEN WAIT FOR A RED CANDLES AND SELL
- YOU CAN SWITCH TO 15 MIN CHART TO CHECK PERFECT TRADES AND SELL
- KEEP SELLING ONCE YOU SEE MORE RED CANDLES ON 15 MIN CHART V
- REMEMBER WE USE HIGHER TIME FRAMES TO ANALYSE AND ENTER ON 15 MIN CHART
- REJECTIONS SHOULD BE CLEAR AND STRAIGHT FORWARD
- HOLD TILL YOU SEE BUY SETUPS
EXAMPLES
- The pictures below shows us perfect inverted v setups
- We sell after a rejection and a red candle
- If we see an inverted v on the daily or 4 hours chart we switch to 15 min chart and look for possible entries
