Saturday, June 10, 2006

Using a Vix Indicator

Question:
Mike, can you confirm when using the Volatitly Index indictor (VIX) for Intraday trading do you use it with standard settings of 10 10?
If not, what setting do you use for the Vix indicator for Intraday setting and how to use/read it?
Thanks, Naz

Answer:
Naz-I only eyeball the Vix intraday. I have a set of end of day signals that I use however. Since volatility is "mean-reverting" look for extremes (e.g., 10% over/under 10 period sma) that then reverse for the best signals. Best, Mike