What is this The volatility rainbow tracks divergences in a security and its volatility index. This can be used to identify periods of heightened implied (future) risk.
About Volatility The volatility is calculated by looking at put / call ratios. When VIX goes up it means that puts are outpacing calls. This is a bearish signal.
About Correlation When the security goes up while the VIX goes up, the divergence on the plot will increase and turn a color. This should be a warning.
Volatility Rainbow This is a similar indicator, but this one merges all signals into a single line.
Catatan Rilis
What is this The volatility prism tracks divergences in a security and its volatility index. This can be used to identify periods of heightened implied (future) risk.
About Volatility The volatility is calculated by looking at put / call ratios. When VIX goes up it means that puts are outpacing calls. This is a bearish signal.
About Correlation When the security goes up while the VIX goes up, the divergence on the plot will increase and turn a color. This should be a warning. This index tracks the divergence of SPY/VIX, QQQ/VXN, IWM/RVX, DIA/VXD, GLD/GVZ, SPY/VVIX, SPY/TLT in one index.
Volatility Rainbow This is a similar indicator, but this one merges all signals into a single line.
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