I have noticed this correlation between Nifty and Indiavix.
1. Whenever there is a spike in volatility and volume, that seems to mark the bottom for Nifty. 2. This theory seems to be holding for the last 7-8 months. 3. Currently, we are facing a similar kind of situation. The Vix has spiked and the price is tanking. 4. If the theory holds its value, the bottom may be reached soon. 5. However, this is just a probability like every other theory. Hence, we will have to wait and see it out.
Disclaimer: This is NOT investment advice. This chart is meant for learning purposes only. Invest your capital at your own risk.
@johntradingwick, thanks and do u look current month futures only for volume
Munchkunster
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Looks like the theory is holding up ..
One question.. How did you overlap IndiaVix on the chart? .. Can u tell me the name of the indicator used?
johntradingwick
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@samarthgupta1911, Hi, this is not an indicator. There is a "Compare" option alongside the "Indicators" option. Look for that. You can use it to compare different charts.