SPX-VIX Intraday Divergence

13 May 2020

As a long-term buyer/short-seller, you will always find different ways to enter the market , moving average crossovers, breakouts , overbought/oversold conditions being some of the classy methods. However, they are decreasingly effective... 😢

Recently I have realized that analysis beyond the technical indicators will bring trading to the next level because I will be able to confirm my trading signals without relying too much on basic price actions and patterns which are easily manipulated by big banks and institutions. 👍

Today I will introduce you to my divergence indicator making use of SPX and VIX. Unlike MacD or RSI divegence , which would involve normative judgement , it will take account of the unusual move by SPX alongwith the VIX , to the exploit chances that options market, where most experienced investors participated in has a preceding insight into the equity market about the upcoming moves.

I have divided signals into two groups.

• Bullish divergence - SPX Down , VIX also Down 👇
  Bearish divergence - SPX Up , VIX also Up 👆
  

I hope this script will enable us to take advantage of the options market activities , to provide a REAL divergence signal, and be used coupled with our own chart patterns or other price signals, and more importantly to score more and more winning trades!!!

If you want more useful scripts from me, please like and share my posts. And don't forget to follow my account to grab the latest ideas and tools! 😘