- Technical Analysis

  
 
 Technical Analysis
 


MV Volume Indicators

Index Volume

VMA

VMA Displaced

SBV (S-B) Osc.

Selling & Buying Volume

MVO

 

AD Momentum

AD Momentum VMA

AD Mom Volume Osc

AD Mom Volume Ratio

 

AD Indicators

AD Volume

Adv - Decl Volume Osc.

Adv / Decl Volume Ratio

AD Issues

Adv - Decl Issues Osc.

Adv / Decl Issues Ratio

TRIN

McClellan Oscillator


Price Indicators

Moving Average

MA Displaced

MACD

MACD Histogram

RSI

Stochastics

Stochastics RSI

Rate of Change (ROC)

Up/Down Price


Volume Indicators

Volume ROC
Volume Oscillator
PVO
VAO


Other Indicators

Volatility Index


Technical Analysis, Studies, Indicators:
VIX, VXN and VXO Volatility Indexes


Back to the List of Studies

The VIX (CBOE Volatility Index) is based on the S&P 500 stock index option prices and measures the market expectations of near-term volatility. The VIX has been introduced in 1993. VIX is considered an indicator of investor sentiment and market volatility.

The VXN (CBOE NASDAQ Volatility Index) and VXO (CBOE Volatility Index) are other volatility indexes. VXN is based on the NASDAQ 100 index (NDX) options.

VXO is based on the S&P 100 index (OEX) options. Until 2003, the VIX index calculation was based on the CBOE S&P 100 index (OEX). With the introduction of the new and revised, more robust calculation methodology, the underlying index was changed to the CBOE S&P 500 Index options (SPX). Yet, the CBOE has made a decision to continue calculating volatility index based on the S&P 100 under the new ticker - VXO volatility index.

The high volatility index value indicates the increased panic in the stock market. At the same time the low volatility index would indicate more stability in the market.

Chart 1: VIX, VXN, VXO and S&P 500

VIX VXN VXO Chart Volatility indexes

The volatility indexes are used in trading systems to trade underlying options and futures (VIX options and futures, S&P 500 options ...) as well as a measurement of the market sentiment in the trading systems based on the index analysis.

In some cases, traders use volatility indexes to analyze the overall sentiment for equity options rather than for the whole stock market. However, in many cases the relationship of the VIX/VXN/VXO to equity options can be easily overstated simply because different dynamics drive the volatility of the S&P 500 index options and individual equity options, and the two can often be uncorrelated. For instance, technology stocks are usually more volatile than the utility stocks and to use the VIX to represent the volatility of stock from these two sectors could be overly simplistic.

Chart 2: High VIX and S&P 500 support

vix chart


Start using our Professional Charts
and Make Money with our System!

Sign up for a 30-Day Free Trial Now!
(credit card not required)


 

FREE Trend Alerts

Type the numbers:
 


 
Stock Exchange
    AMEX
NASDAQ
NYSE


 Nasdaq in a month?

Up more than 5% 
Stay the Same 
Down more than 5% 
I don`t know 


 
Index Trading
    DJI
DJT
DJU
NASDAQ 100
S&P 100
S&P MidCap 400
S&P 500
S&P SmallCap 600
Russell 1000
Russell 2000
Russell 3000

 


 
Sector Indexes
    Gold Amex
Oil Amex
Semiconductors


Investment Glossary
Stock Market
Trading Strategy
 

 

Disclaimer | Site Map
© 1997-2008 Highlight Investments Group. All Rights Reserved.

7/25/2008 - SV1