OPEN-SOURCE SCRIPT
Volatility Inverse Correlation Candle
This is an educational tool that can help you find direct or inverse relations between two assets.
In this case I am using VIX and SPX .
The way it works is the next one :
So I am looking at the current open value of VIX in comparison with the previous close ( if it either above or below) and after on the SPX I am looking into the history and see for example which type of candle we had in respect with the opening value from VIX .
So for example, lets imagine that today is monday, and the weekly open value from VIX was higher than previous friday close value. Now I am going to see with the inverse correlation , if based on this idea, the current weekly candle from SPX finished in a bear candle.
The same can be applied for the bearish situation, so if we had an open from VIX lower than previous close, we are looking to check the SPX bull candle accuracy.
At the same time, for a different type of calculation I have added an internal lookup into heikin ashi values.
If you have any questions please let me know !
In this case I am using VIX and SPX .
The way it works is the next one :
So I am looking at the current open value of VIX in comparison with the previous close ( if it either above or below) and after on the SPX I am looking into the history and see for example which type of candle we had in respect with the opening value from VIX .
So for example, lets imagine that today is monday, and the weekly open value from VIX was higher than previous friday close value. Now I am going to see with the inverse correlation , if based on this idea, the current weekly candle from SPX finished in a bear candle.
The same can be applied for the bearish situation, so if we had an open from VIX lower than previous close, we are looking to check the SPX bull candle accuracy.
At the same time, for a different type of calculation I have added an internal lookup into heikin ashi values.
If you have any questions please let me know !
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
🔻My Website: hercules.money/
🔻Blog: hercules.money/blog/
🔻Telegram : t.me/hercules_trading
🔻Discord: discord.gg/hudcJvcCAq
🔻Blog: hercules.money/blog/
🔻Telegram : t.me/hercules_trading
🔻Discord: discord.gg/hudcJvcCAq
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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
🔻My Website: hercules.money/
🔻Blog: hercules.money/blog/
🔻Telegram : t.me/hercules_trading
🔻Discord: discord.gg/hudcJvcCAq
🔻Blog: hercules.money/blog/
🔻Telegram : t.me/hercules_trading
🔻Discord: discord.gg/hudcJvcCAq
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.