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VIX is a volatility measure as are Bollinger bands. They represent an
"expected" 1 standard deviation range. VIX is not an actual volatility but
rather a benchmark volatility calculated from 8 OEX options. Rather than
consider it as a pure vol you should view it as a benchmark measure.
Marcelo Martinez wrote:
> Can you use VIX as a volatility measure?
>
> >Volatility may be measured with Bollinger's Band Width Indicator (distance
> between
> >Bollinger Bands divided 20 days SMA of the close), plus its 5 (to 9) days
> EMA. I
> >normally look at crossovers and extremely low levels measured as the
> indicator being
> >below one third of the BWI highest measure of the last year.
> >
> >Alberto Torchio
> > Torino, Italy
> >
> >
> >
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