Simple Charting | ^VIX | Volatility Index | Moses Power Simple Charting | AmiBrokerAcademy

20 July 2021

Welcome!

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Trading is all about observation, reading the price bar and not news. By the time you hear the news it is already old and become history. Why? It is very simple, remember where the news come from? It has first someone release to the news agency like CNBC, and so on. Next, someone has to read the news to you after some research and summarize. This will be few hours later, by then the price action has already done.

As for price bar, it is what the market supply and remand. When market feel that is over price, the price will drop. All this reflected on the price bar almost instantly.

Next is how to read our price bar plus using some tools, such as MACD.

Here, we simply translate price action chart into layman language. This will help you in understand the financial instrument you are trading. We believe picture worth a thousand words. So, sometimes we use less words. You can learn the price action interpretation too. Give it a tray. You may not have the same view points as us. Remember all analysis read price action chart differently. It is just like reading an essay, we will have different conclusion.

Trade well.

Trade what you see. Manage your risk.

1) ^VIX | Volatility Index and Ichimoku Cloud

Ichimoku Cloud is a trend following strategy tool, can use in any market and any timeframe. Ichimoku indicator emphasize to trade in the trend direction. We see price action resisted by the cloud. Price Action goes from the top, top left to bottom right, ie Bear trend. We see Tenkan Sen (green) below Kijun Sen (red). Tenkan cross below Kijun and stay below, bear trend. Although Tenkan has spike above Kijun a few times. Price Action stay below both Tenkan and Kijun. Price Action stay below cloud. Cloud act as resistance to keep the price action low and lower.

Ichimoku is a great visual tool, to help to avoid trading in the wrong direction.

Ichimoku Cloud is a multi-dimensional indicator designed to offer support and resistance levels, trending, and entry and exit points. Besides that, Ichimoku is an indicator that gauges future price momentum and determine futures areas of support and resistance. Price Action is currently below cloud.

Trade what you see. See a potential support.

Trade what you see.

Remember, we just read what the chart said. Have fun!

But. don’t play play with Ichimoku indicator. Very simple yet powerful. We are here provide you simple stock chart, but powerful stock charting. Have fun!

20210716 Volatility Index and Ichimoku Cloud

2) Volatility Index and Support Resistance

Study Volatility Index price action, price action goes from high to low, from top left to bottom right. If we use the month high low to help in the support resistance. We will fine a key level, price action has gone below the key level and stay lower.

If you a H M Gartley fans, you probably spot a big ABCD pattern. From the ABCD pattern, the CD leg has completed. Checkout the ABCD pattern characteristic. Trade what you see.

20210716 Volatility Index and Support Resistance

3) Volatility Index and River

Price Action is pointing to three o’clock direction. See chart, we see the trend is slopping down for its high, and also down for its low.

Moving Average is a great visual tool. Raghee uses high, low and close of 34 EMA to form a band to determine the wave direction. Price action goes from below 34 EMA and continue to stay below River. Price Action fail to go higher, although the price action has breakout above the River a few times.

Manage your risk.

20210716 Volatility Index and River

4) Volatility Index and GMMA and Woodies CCI

Price Action and Fast MA (green) goes from above Slow MA (red) to below. Price action continues to stay below Fast MA (green) and Slow MA (red).

Trade with eyes open.

20210716 Volatility Index and GMMA and Woodies CCI

5) Volatility Index and Bollinger Bands and Moving Averages

Price Action and moving averages:
^VIX, Volatility Index price action has closed above its Short time (20 period) moving average.
Short time (20) moving average is currently below mid-time (50), AND below long time (100) moving averages.
All three 20, 50 and 100 MA are below longer time (200 period) MA.

Bollinger Bands:
^VIX, Volatility Index price action has closed above the upper band. Although prices have broken the upper band and extreme, therefore a upside breakout is possible. Most likely, ^VIX is to continue with the upward momentum. Picture is worth a thousand words. Trade what you see.

Mange your risk.

20210716 Volatility Index and Bollinger Bands and Moving Averages

6) Volatility Index and MACD

We study price action we see MACD Divergence, price action continues to go lower, but MACD begin to form higher low. But, when the reversal is going to happen. As everyone by now will know that MACD Divergence is like a traffic light, you don’t have to stop at every traffic light. So, a MACD Divergence is asking you to find confirmation of price action change. So, look out for bullish candlestick pattern and so on.

Trade what you see.

So, read the information you can get from the chart. You probably notice a MACD cross up signal, this is a signal on price action reversal. Reay to buy.

Remember, we just read what the chart said. Have fun!

But. don’t play play with MACD indicator. Very simple yet powerful.

20210716 Volatility Index and MACD

Moses Power Charting

Official AmiBrokerAcademy.com Charting

Disclaimer

The above result is for illustration purpose. It is not meant to be used for buy or sell decision. We do not recommend any particular stocks. If particular stocks of such are mentioned, they are meant as demonstration of Amibroker as a powerful charting software and MACD. Amibroker can program to scan the stocks for buy and sell signals.

These are script generated signals. Not all scan results are shown here. The MACD signal should use with price action. Users must understand what MACD and price action are all about before using them. If necessary you should attend a course to learn more on Technical Analysis (TA) and Moving Average Convergence Divergence, MACD.

Once again, the website does not guarantee any results or investment return based on the information and instruction you have read here. It should be used as learning aids only and if you decide to trade real money, all trading decision should be your own.

We learn from many past and present great traders. Kudo to these master.