Adz Trades

Adz Trades

28-04-2022

23:29

$VIX to help trade $SPY thread🧠 :

VIX represents the expected volatility in the market and affects many things, such as option contract prices ,but this thread will look at how you can use $VIX to trade $SPY specifically 💡

To put it simply VIX and SPY are inversely related, therefore if VIX increases, SPY will tend to decrease 📈📉

VIX works especially well with key psych levels I.e. $20 and $30 as it tends to have big moves from these levels meaning SPY will have a potential big move in the opposite direction 🤝

Anyways let’s see how you can use it to trade SPY with an example from today that helped me 👀

Here you can see SPY was in a downtrend and ran to my 9ema followed by my red candle , this is a very valid entry point to enter puts. But how can can I get that extra conviction to ensure it’s an A+ setup and make sure SPY will continue moving down ? 🤔

Here I check VIX to see. We can see that VIX based just under resistance and now broke out at the exact same time SPY got this red candle. I now have further conviction VIX will continue up hence SPY will continue down , I therefore enter puts and touches 50% at peak 🔥

Kept this short and sweet so there’s still a lot more to VIX but I hope this thread helped to get a slight understanding of VIX and how you can use it to help in your trading ❗️

Let me know if there’s any questions , appreciate any retweets/likes 🌟



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