Volatility, expressed through standard deviation, quantifies market elasticity and presents a level of probability and precision that humbles us all.
In my analysis, I track trending volatility to discern historical patterns (HV) and utilize them to anticipate future outcomes (IV). This weighted indicator provides a comprehensive and accurate range for observation.
When trending historical volatility expands or contracts around implied volatility, price action can be interpreted as positively or negatively compounded within the predicted implied range.
I measure this concept using the ‘strength’ of IV and calculate my implied range based on the current market elasticity. This system is adaptable to any IV condition, as it allows for a fair assessment of market movements and potential outcomes.
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Last week, volatility increased slightly as bi-weekly trends picked up over monthly values -- the same near term trends with the major indices show strength within 8% of IV into this next week.
One thing to note:
MSFT 
NVDA and 
TSLA all show near term contraction under stated IV within the magnificent 7 while the rest show shorter term volatility as expansive.
What do you think the
VIX will do this next week?
___________________________________
For those interested in volatility analysis and the application of my system using weighted HV ranges to IV, I encourage you to BOOST and share this post, leave a comment, or follow me to join me on this journey!
We will weekly analyze our ranges under the VIX and engage in discussions.
In my analysis, I track trending volatility to discern historical patterns (HV) and utilize them to anticipate future outcomes (IV). This weighted indicator provides a comprehensive and accurate range for observation.
When trending historical volatility expands or contracts around implied volatility, price action can be interpreted as positively or negatively compounded within the predicted implied range.
I measure this concept using the ‘strength’ of IV and calculate my implied range based on the current market elasticity. This system is adaptable to any IV condition, as it allows for a fair assessment of market movements and potential outcomes.
__________________________________
Last week, volatility increased slightly as bi-weekly trends picked up over monthly values -- the same near term trends with the major indices show strength within 8% of IV into this next week.
One thing to note:
MSFT NVDA and TSLA all show near term contraction under stated IV within the magnificent 7 while the rest show shorter term volatility as expansive.What do you think the
VIX will do this next week?___________________________________
For those interested in volatility analysis and the application of my system using weighted HV ranges to IV, I encourage you to BOOST and share this post, leave a comment, or follow me to join me on this journey!
We will weekly analyze our ranges under the VIX and engage in discussions.
Dive deeper into the world of volatility with me — Post a comment, ask a question, and BOOST the post if you’d like.
Make sure you 'Grab my Chart' weekly to pull my data onto your screen!
Find me over on the 'X' platform:
@askHVtobidIV
Make sure you 'Grab my Chart' weekly to pull my data onto your screen!
Find me over on the 'X' platform:
@askHVtobidIV
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Dive deeper into the world of volatility with me — Post a comment, ask a question, and BOOST the post if you’d like.
Make sure you 'Grab my Chart' weekly to pull my data onto your screen!
Find me over on the 'X' platform:
@askHVtobidIV
Make sure you 'Grab my Chart' weekly to pull my data onto your screen!
Find me over on the 'X' platform:
@askHVtobidIV
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.