PIVFIBMA VOLATILITY 75 INDEX STRATEGY

Trading Volatility Index (VIX) with PVFIBMA strategy is a Price Action way of forecasting synthetic indices price movement.

PIVFIBMA simply means Pivot point, Fibonacci levels and Moving Averages.

Analyzing VIX assets with PIVFIBMA involves taking a close look at price on different time frames  such as four hour and one hour time frames.

PIVFIBMA analysis also involves the calculation of pivot point levels, Resistance, Supports, Fibonacci Retracement Levels and Moving Averages.

Pivot Point Analysis:

Volatility Index assets have a way of reacting to Pivot points, Support and Resistant levels.

However, VIX candlestick price opens above or below Pivot Points.

There are times when Price laps across the Pivot point line (here, you expect price to continue in the current direction-Trend continuation).

On the other hand, price forms rejection or reversal candle stick patterns around the pivot point line, (here, you expect price to reverse its direction).

 

Check Out:

Support and Resistance

Daily Pivot Point

How To Trade Pivots

Time Frame For Pivot Analysis:

The best time frame to analyze Pivot point level for VIX assets, especially Volatility 75 Index is four hour time frame.

To do this, simply get the High, Low and Close price of the previous four hour candle. Hit this link to learn more How To Trade Pivots.

Find examples of Pivot point, Resistance and Support levels below;

Resistance 3

974384.27

Resistance 2

956391.17

Resistance 1

922348.42

Pivot Point

904355.32

Support 1

870312.57

Support 2

852319.47

Support 3

818276.72

 

 

 

 

Fibonacci Retracement Level Analysis:

Another aspect of analyzing VIX assets with PIVFIBMA strategy is the use of Fibonacci Retracement Levels (Fibo levels).

Retracement levels such as 38.2%, 50%, 61.8%, 74.6% and 88.5% are identified on the price chart and these may serve as Support or Resistance.

There are times when Price laps across the Fibo levels (here, you expect price to continue in the current direction-Trend continuation).

On the other hand, price forms rejection or reversal candle stick patterns around the Fibo levels, (here, you expect price to reverse its direction).

Time Frame For Fibonacci Retracement Analysis:

The best time frame to analyze with Fibonacci Retracement levels for VIX assets, especially Volatility 75 Index is one hour time frame.

To find Fibo Levels of a Downtrend, simply drag the Fibonacci Retracement Tool from the High point to the Low point of the downtrend.

In an Uptrend, to find Fibo Levels, simply drag the Fibonacci Retracement Tool from the Low point to the High point of the uptrend.

Hit this link to learn more on Fibonacci Strategy.

Moving Average Analysis:

The last aspect of analyzing VIX assets with PIVFIBMA strategy is the use of Simple and Exponential Moving Averages.

Simple and Exponential Moving Averages such as 200 SMA, 200 EMA, 100 SMA, 100 EMA, and 50 SMA, 50 EMA are identified.

These levels on the price chart may serve as Support or Resistance levels to price.

There are times when Price laps across the Moving Average (MA) levels (here, you expect price to continue in the current direction-Trend continuation).

On the other hand, price forms rejection or reversal candle stick patterns around the MA levels, (here, you expect price to reverse its direction).

Death Cross occurs when the 50 Moving Average cross down on the 200 Moving Average.

You will expect downtrend to form when this happens.

Golden Cross occurs when the 50 Moving Average cross above on the 200 Moving Average.

You will expect uptrend to form when this happens.

Time Frame For Moving Average Analysis:

The best time frame to analyze with Moving Averages for VIX assets, especially Volatility 75 Index is one hour time frame.

To find Moving Average Levels on the chart, simply load the Moving average tool from the indicators icon or Navigator window.

 

Trendlines Plotting:

Additional action that you may take when analyzing VIX assets is by plotting Trendlines in order to determine support and resistance levels.

This can be done on the one hour time frame.

Whenever the trendline is broken, you must pay attention to how price reacts.

This is important because there are instances where price breaks the Trendline and continue to move in one direction (Breakout).

On the other hand, there are times when price forms a wick against the Trendline after breaking it (Fakeout).

 

Referral links;

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(Email: beanfxtrader@gmail.com)

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