![]() You can see this moving average on the chart above. The first one uses the 10 period moving average. There are about 10 different types of VIX reversals (called CVR signals). Low readings usually occur after a rally and you want to be focusing on short positions. High readings usually occur after a market sell-off and you will want to be focusing on long positions. This means that periods of high volatility will eventually revert to their mean and periods of low volatility will eventually rise to their mean. It provides us with a good indication of the level of fear and greed in the market. The Volatility Index (VIX) measures future volatility. Keep an eye on this indicator and use it in addition to your regular market timing strategy. It is used to identify when the overall market (S&P 500) is likely to reverse. This market timing system was developed by Larry Connors and has become known as Connors VIX Reversals. The VIX, or Volatility Index, can be used to time your trades to the market. LARRY CONNORS – TRADING CONNORS VIX REVERSALS & TRADESTATION FILES
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