Also, if I do have time to write, it will likely be on other topics of my interests, such as relationship compatibility or personal growth. I have included two posts as examples of what I had written in the past in my new blog thirdeyeanalyst.blogspot.com
I thank all who have visited this blog site over the past few years...
FAIR VOLATILITY (VIX) ESTIMATE INDICATOR (on SPY)
 |
| FVE Indicator (red), VIX (black), Front Month VIX Futures Prices (red/green) |
REALIZED VOLATILITY INDICATOR (USO example)
 |
| Realized Volatility Indicator (red) of USO , CBOE Oil Volatility Index (black) |
The detailed formulas for FVE Indicator and Realized Volatility Indicator are discussed in
1) http://thirdeyemarketanalyst.blogspot.com/2013/08/fair-volatility-vix-estimate-model_19.html
2) http://thirdeyemarketanalyst.blogspot.com/2013/08/fair-volatility-vix-estimate-model_20.html
VOLATILITY TIMING INDICATORS (GLD example)
 |
| Stochastic Oscillator of Realized Volatility Indicator (21,3) (blue), Market Energy Indicator (green) |
Utilizing technical analysis on Volatility could hold promise to designing trading systems. Preliminary research and backtest simulation was summarized in http://thirdeyemarketanalyst.blogspot.com/2013/08/technical-analysis-on-volatility-my_25.html
One example of volatility timing indicator is by using Stochastic Oscillator (21,3) on the Realized Volatility Indicator itself. One can use fixed or adaptive bands as triggers so if the Stochastic Oscillator is rising, then go long volatility, else if it is falling, then go short volatility.
The Market Energy Indicator is the average of the Stochastic Oscillator (21,3) on both the Realized Volatility Indicator and Standard Deviation Indicator.
Good trading everyone!!!
