Volatility – Weekly Analysis
This weekly series we again start with VIX—one of the most important tools in our strategy arsenal. Let’s hear what its candles and indicators are telling us and what they suggest about the future.
CANDLES
Daily
Weekly
The volatility index made a serious bearish statement on the daily and smaller frames: a strong Dark Cloud Cover and Bearish Engulfing on the daily, backed by technical support. VIX (US) printed a very strong Three Black Crows on the 4-hour frame.
The weekly picture is less straightforward. The combos read as a bearish Harami; they require confirmation and could probe higher before doing so.
Two instruments formed moderate bullish candles on the 10D and 8D frames, which is a concern despite very long upper wicks.
I don’t think volatility is fully gone; some aftershocks are reasonable to expect. Ideally, the simple path on Monday would be an open with volatility above this week’s close, followed by a steady fade that forms engulfing-type candles across multiple frames. Any other path adds complexity.
Overall, odds are bearish short term and neutral mid term. The long term is unreliable and rarely discussed in these reports.
Happy Trading!
