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How does one interpret VIX? Thanks
dn
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-----Original Message-----
From: THE DOCTOR <droex@xxxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Tuesday, April 07, 1998 3:18 PM
Subject: Re: Futr:Support/Resistance
>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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