The VIX, often called the “fear index,” is an indicator of the expected volatility of the U.S. stock market, specifically the S&P 500 index, over the next 30 days. It is calculated by the CBOE based on option prices. Low VIX values indicate a calm market environment, while high values signal increased nervousness and expected price fluctuations. The VIX serves as a barometer of market sentiment and can help investors decide on the timing of investments and risk management.
Why VIX?
When entering a position, it is also advisable to monitor the VIX index. In our system, we prefer values below 20, which indicate a more stable and less volatile market environment.
Answers and Score
ANSWER | SCORE | PRIORITY |
< 15 | 10 | 1,2 |
15–20 | 9 | 1,2 |
20–30 | 5 | 1,2 |
30 | 3 | 1,2 |
Where to find VIX index?
You can find the value here: Finance.yahoo.com
This question is part of this analyzer.
Decameron Stock Analyzer – Swing trading, v.1.0 | open analyzer |