Here’s the Volatility Rotator as of today’s first hour. Now the typical questions coming from readers are, “How do I use this thing?” or “I don’t have Telechart”. As to the first question, it’s really simple. This is a both a visual and a quantitative screen for assessing and forecasting market momentum with both regard to the overall market and sectors within the market such as oil, gold, the Qs, NAZ, Dow and Euro. The fact that the VIX (SP500 volatility) tends to ride the midline of the screen should be expected . . the wider the sample net the more diversified the volatility. We can then look at the various sectors and see volatility relative to the VIX, which should give us a quick thumbnail of what sectors are reacting more or less enthusiastically. I find this screen particularly useful when run at the end of the day and then when run at the subsequent opening as it oftens sets the tone for the entire session. As to the second question: next week I’ll illustate how any trader can run this type of screen in real time for free. FREE! There’s that word that makes traders’ hearts pick up a few beats and really pay attention. Nevertheless, it’s a quality setup and offers some interesting forensic possibilities. It’s also fractal and can be run in any time frame from 1 minute to 1 month. Also next month, Prophet subscribers will be eligible for a special lottery . . the prize being a hard coded version of the VIX template embedded with the BZB proprietary Prognosticator.
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