Volatility 75 Index
Volatility 75 Index
{SE Strategy}
The SE Strategy is based on the following concepts:
These are levels that have been tested by several times. They are called Volatility Zones.
The market does one of these two: either bounce off the level or break the level.
Before any decision, wait for the market to give us what we expect or to decide what to
do
When the market is at resistance level or about to hit resistance we wait for it to give us
a breakout, a retest back to that zone and a (GREEN) bullish candlestick, turn resistance
into support then we buy when we see a (GREEN) bullish candle.
WAIT FOR A GREEN REJECTION CANDLESTICK, BOUNCE AND A RED CANDLESTICK WITH
A SMALL REJECTION.
When the market is at resistance we wait for it to bounce, give us a (GREEN) bullish H1
rejection candlestick, we wait for that candlestick to close as a rejection, we then wait
for the next hour candlestick to also give us a rejection and turn RED then we sell, we
sell only when we see a RED candlestick following a GREEN rejection candlestick at
resistance.
TRENDLINES
REJECTIONS
Breakout should be clear, wait for the market to break the level, retest back to that level
then continue along with the trend after a candlestick that shift the zone has appeared.
Keep in mind that there could be a fake breakout, where the market can break a level
then come back in the zone, always wait for a clear breakout followed by a retest then a
candlestick that shift the zone, before executing your orders.
H1 TIMEFRAME
The market usually moves up and down with maximum 7 H1 time frame candlesticks
then reverse, count your H1 time frame candlesticks, most of the time the market
reverse or retest after 4,5 or 6 H1 candlesticks, 7 is maximum. After 4, 5 or 6 H1
candlesticks at support or resistance level expect a reversal or retest in H1 time frame.
This is very accurate, that's how VIX behave.
We use M15 and M5 for Sniper entries, I use this time frames to master sniper entries
When the market is at support or resistance on our pillar H1 time frame, I wait for the
market to reject at those zones, I then use M15 and M5 to enter my trades.
These time frames are used to smell a reversal even before the H1 time frame show sign
of a reversal, when H1 is forming a rejection at support, M15 or M5 is showing a W
formation already, which is a reversal pattern, I then BUY when the market gives me a
W, rejections and a Green candlestick in M15 or M5.
When I see that the market is at support in H1 time frame I wait for the current H1
candle to reject, even before it close I go to M15 and M5, they will show a Green candle
even before H1 candle close, while it is still rejecting.
SUMMARY
Keep in mind that VIX is very volatile, it's a volatility index, we scalp and hold it using the SE
Strategy, I use H4 time frame for daily OVERALLBIAS, if H4 time frame shows me that the
market today is going down, I look for more sell orders in H1 , I look to hold my sell orders for
the day.
Every time when you login to your platform go to H1 our pillar, draw your support and
resistance and trend lines, and check whether the market is bullish or bearish.
If the market is bullish count the number of H1 candlesticks the market went up with, wait for
the market to approach resistance, to give you a green rejection candlestick, and as it is
rejecting go to M15 and M5 to look for am M formation, when you see that formation and
when you see a Red candle in M15 after several rejections you sell.
You can also wait for the H1 candle to close as a green rejection candlestick, then wait for the
following candle to also give you a rejection and when it turns Red you sell. For safe entries
Wait for the H1 candlestick to close as a rejection then wait for the following candle to change
colour and shift the zone then execute your entries.
While holding your sell orders, the market will retest, check the retest in H1 and usually the
market will retest with 2 or 3 H1 candles, after that retest you sell again, after 4, 5 or 6 bearish
candles you know that the market will reverse any time soon, so you take your profit, then wait
for the market to approach support.
When the market is at support you wait for it to give you a Red H1 rejection candlestick, then a
Green rejection candlestick and buy when you see green after 4, 5, or 6 Red candlesticks,
remember maximum is 7 H1 candlesticks.
When the market is consolidating we make more money as a range in VIX is very exciting to
scalp. Most of the times during a range VIX go up and down with 2 to 3 candlesticks then
bounce and reverse, in M15 that's 8 to 12 candlesticks, use this 2 to 3 candlesticks rule when
you trade VIX during a ranging market.
The best risk management plan to follow is your own risk management plan.
I personally use the following risk management plan:
For any amount under $100 I use 0.01 lot and execute 1 order
I withdraw 50% of my initial investment after I make $150 or $150+
I withdraw 100% of my initial investment after the first profits, after I make
$200 or $200+, it depends on whether I close my first trade with 50 or 100% profit.
THE 3 BEARISH CANDLES PATTERN
On Volatility 75 Index, two consecutive trios of bearish candlesticks (red candle), connected by one
different one bullish ( green candle ) is a 99% safe sniper entry if the next candle after the second
bearish trio closes as a bullish candle.
On Volatilities Indices, considering M15 as the time frame from your MetaTrader 5, two bullish
candles sharing the same closing price with the opening of a bearish candle between them is a
great selling sniper entry confirmation, it always works.
When this happens, trader is supposed to sell at all cost right after the closing of the third
candle.
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Stop SELL
Take profits
Stop loss SELL entry
Take profits
The volatility 75 index measures the volatility of SP500 securities. A reading above 20 means that the
market is fearful, which brings higher volatility. Hence, volatility 75 is often considered a risky and
unstable market.
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The Volatility 75 Index (VIX75), also known as a fear Index, measures market fear, stress, and risks.
When there is a high VIX, the market fear is considered to be quite high. In such a scenario, traders
experience a sharp increase in the Volatility index after a market crash. An increase in VIX results in a
drop in the S&P500 price. On the other hand, when the VIX falls and the S&P price goes up, the traders
tend to sell or exit the market.
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If the VIX value increases, it is likely that the S&P 500 is falling, and if the VIX value declines, then
the S&P 500 is likely to be experiencing stability.