There are several ways to trade volatility index, such as:
Buying and selling futures contracts on a volatility index such as the VIX
Trading exchange-traded products that track the VIX, such as VXX or UVXY
Using options to trade volatility, such as buying or selling call or put options on a volatility index.
It's important to note that trading volatility can be risky and it's important to understand the underlying mechanics of how these products work before trading them. Additionally, it's important to note that volatility indices such as the VIX are derived from options prices, they don't always move in the same direction as the underlying stock market. It's always recommended to consult with a financial advisor before making any investment decision.
2. VOLATILITY INDEX
WE TRADE 4 TYPES OF VOLATILITY INDEXES
VIX 75
VIX 50
VIX 25
VIX 100
THE TOP LEADING ONE IS VIX 75 , IT PAYS MORE MONEY ,
FOLLOWED BY VIX 50, VIX 25 AND THE LAST ONE IS 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.O1
THEY ARE ALL FOUND ON BINARY.COM UNDER THE SYNTHETIC
INDICE ACCOUNT ON MT5
3. 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 wedges etc
So do not use those on vix
Here we use m and w plus rejections
We also use the trend
We trade on 15min chart , 4hour chart and the daily chart
We also use escalpando for points reversal scalps we also use lower
lows and higher highs , v formations inline with the trend
4. The strategy cont……..
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 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 4HOURS CHART
CHECK IF YOU SEE THE ABOVE MENTIONED
IF YOU SEE THEM , SWITCH TO 15MIN 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 15MIN CHART
AND EXIT ONCE WE SEE BUY SETUPS
CLICK HERE TO OPEN ACCOUNT AND START TRADING
5. SELL TRADES CONT…….
NOW USING M FORMATIONS TO TRADE
WAIT FOR VOLATILITY TO BE OVERBOUGHT ON DAILY TIME FRAME OR
4HOURS 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 TIMEFRAME ,
SWITCH TO 15MIN 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
6. EXAMPLES
Pictures below shows the m shapes of volatility index on higher time frame
Then we switched to 15min 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 timeframes
and sell
Remember to keep on selling
7.
8.
9.
10. 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
CANLDE AND SELL
YOU CAN SWITCH TO 15MIN CHART TO CHECK PERFECT TRADES AND SELL
KEEP SELLING ONCE YOU SEE MORE RED CANDLES ON 15MIN CHARTV
REMEMBER WE USE HIGHER TIME FRAMES TO ANALYSE AND ENTER ON
15MIN CHART
REJECTIONS SHOULD BE CLEAR AND STRAIGHT FORWARD
HOLD TILL YOU SEE BUY SETUPS
11. 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 4hors chart we switch to 15min chart
and look for possible entries
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14.
15.
16.
17. SCALPING SELL TRADES VIX ………..
SCALPING THE VIXX ON 15MIN CHART
GO TO DAILY CHART OR 4HOUR CHART
CHECK THE TRUE DIRECTION OF VIX
REMEMBER IT MOVES ON A STRAIGHT LINE
IF PREVIOUSLY THERE WAS AN M ON THE DAILY CHART OR 4HOURS CHART AND THERE ARE
MORE RED CANDLES , AND THE M IS NOT YET COMPLETED , SWITCH TO 15MIN CHART
YOU WILL SEE MORE RED CANDLES
WAT FIOR A NICE RETRAICEMENT UP AND SELL
OR WAIT FOR A HIGHER HIGH AND SELL
HIGHER HIGH IS JUST AN INVERTED V THAT FORMS INLINE WITH A DOWN TREND
YOU CAN WAIT FOR THE MARKET TO GO UP A ND FORM A V THEN SELL
OR YOU CAN WAIT FOR M AND SELL
ALWAYS CHECK HIGHER TIME FRAMES
IF YOU SEE THAT THE MARKET WILL STILL FALL
SWITCH TO 15MIN CHART
WAIT FOR RED CANDLES AND SELL
OR WAIT FOR REJECTIONS UPWARDS AND SELL
OR WAIT FOR M AND SELL
ALWAYS FOLLOW THE TREND BUT BE SMART AND WAIT FOR SETUPS
IF THE MARKET IS ON AN UPTREND DON’T SELL
IF THE MARKET IS ON DOWNTRAND SELL
18. EXAMPLES
The pictures below shows when to scalp volatility
M formation formed and we see more red candles we keep selling
V formation formed and we see more red candles we keep selling
CLICK HERE TO OPEN ACCOUNT AND START TRADING
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20.
21. LONG TERM TRADES (SWING TRADING) FOR BUY TRADES
First check the daily chart
Wait for the daily chart to reach its lowest point
To see the lowest points , escalpando will be oversold ,
THE MARKET WILL START ISSUING OUT REJECTIONS
THERE WILL BE W FORMATION OR V FORMATION
IF THERE IS W FORMATION , FIRST LEG SHOULD HAVE A REJECTION
SECOND LEG SHOULD ALSO HAVE A REJECTION
IF THERE IS A V FORMATION ,
THERE WILL BE A REJECTION FOLLOWED BY A GREEN CANDLE
AFTER CHECKING THE DAILY CHART , SWITCH TO 4HOURS CHART
CHECK IF YOU SEE THE ABOVE MENTIONED
IF YOU SEE THEM , SWITCH TO 15MIN 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 BUYING
ONLY KEEP ON BUYING WHEN YOU SEE MORE GREEN CANDLES
WE HOLD FROM OVERSOLD TO OVERBOUGHT
WE HOLD ON 15MIN CHART
AND EXIT ONCE WE SEE SELL SETUPS
22. SELL TRADES CONT…….
NOW USING W FORMATIONS TO TRADE
WAIT FOR VOLATILITY TO BE OVERSOLD ON DAILY TIME FRAME OR
4HOURS CHART
WHEN THE MARKET IS OVERSOLD NOTHING SHOULD BE ABOVE THE
CURRENT CANDLE
MEANING THAT THERE SHOULD BE NO CANDLES ABOVE THE CURRENT
CANDLE
WAIT FORM A PERFECT W FORMATION TO FORM
THE W SHOULD HAVE REJECTIONS ON BOTH LEGS AND IT SHOULD BE
CLEAR
AS SOON AS THE SECOND LEG HAS FORMED ON HIGHER TIMEFRAME ,
SWITCH TO 15MIN CHART
WAIT FOR A NICE REJECTION DOWNWARDS AND BUY
HOLD FOR 3 TO 5 DAYS
KEEP BUYING ONCE YOU SEE MORE GREEN CANDLES AS VIX ALWAYS
MOVE ON A STRAIGHT LINE
28. USING V FORMATION TO TRADE ………
WAIT FOR THE MARKET TO GO DOWN AND BE OVERSOLD
WHEN THE MARKET IS OVERSOLD 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 DOWNWARDS THEN WAIT FOR A
GREEN CANLDE AND BUY
YOU CAN SWITCH TO 15MIN CHART TO CHECK PERFECT TRADES AND BUY
KEEP BUYING ONCE YOU SEE MORE GREEN CANDLES ON 15MIN CHARTV
REMEMBER WE USE HIGHER TIME FRAMES TO ANALYSE AND ENTER ON
15MIN CHART
REJECTIONS SHOULD BE CLEAR AND STRAIGHT FORWARD
HOLD TILL YOU SEE SELL SETUPS
CLICK HERE TO OPEN ACCOUNT AND START TRADING
29.
30.
31. SCALPING BUY TRADES VIX ………..
SCALPING THE VIXX ON 15MIN CHART
GO TO DAILY CHART OR 4HOUR CHART
CHECK THE TRUE DIRECTION OF VIX
REMEMBER IT MOVES ON A STRAIGHT LINE
IF PREVIOUSLY THERE WAS A W ON THE DAILY CHART OR 4HOURS CHART AND THERE ARE
MORE GREEN CANDLES , AND THE W IS NOT YET COMPLETED , SWITCH TO 15MIN CHART
YOU WILL SEE MORE GREEN CANDLES
WAIT FOR A NICE RETRAICEMENT DOWN AND BUY
OR WAIT FOR A LOWERS LOW AND BUY
IS JUST AN V THAT FORMS INLINE WITH AN UPTREND
YOU CAN WAIT FOR THE MARKET TO GO DOWN AND FORM A V THEN BUY
OR YOU CAN WAIT FOR W AND BUY
ALWAYS CHECK HIGHER TIME FRAMES
IF YOU SEE THAT THE MARKET WILL STILL RISE
SWITCH TO 15MIN CHART
WAIT FOR GREEN CANDLES AND BUY
OR WAIT FOR REJECTIONS DOWNWARDS AND BUY
OR WAIT FOR W AND BUY
ALWAYS FOLLOW THE TREND BUT BE SMART AND WAIT FOR SETUPS
IF THE MARKET IS ON A DOWNTREND DON’T BUY
IF THE MARKET IS ON UPTREND DON’T SELL
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33.
34. CLICK HERE TO OPEN ACCOUNT AND START TRADING
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