Binary Index Trading VOLATILITY INDEX

Binary Index Trading VOLATILITY INDEX
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Binary Index Trading VOLATILITY INDEX
Synthetic VIX is not a buy/sell signal indicator. It shows the actual condition of the market volatility based on its price index calculation.
The value of the index reacts quite opposite to the price movement direction. We apply it to scan the trader’s sentiment when the market price reaches a certain extent. Generally, the price moves higher when the VIX starts to fall from 1.0. Contrarily, the price intends for a bearish move when the VIX rises from its lowest value (0.0).
This indicator works best in sidelined or confusing states of the market. For example, the price is roaming within a short range for a while, and you’re waiting for a price breakout. In such situations, indicator helps you to determine the possibility and the strength of the breakout setup.
Conclusion
Synthetic VIX is an ideal technical analysis tool for traders who make trading decisions considering the market volatility levels. Besides stocks, this indicator is equally effective for Forex currency pairs and other online trading assets. Also, its simplicity of use offers a great privilege for the newbie technical analysts and price-action traders.
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