This strategy combines NAAIM Exposure Index and the Equity Put/Call Ratio into Fear/Greed Index that oscillates between 0 and 100.
It smooths all of these values and enters a trade when Fear reaches a certain threshold and exits when Greed reaches a certain threshold.
I don't really know if this is a great indicator or not, but the results on various indexes...
Sweet little momentum gadget to track the VIX Index.
What is the VIX?
The CBOE S&P 500 Volatility Index (VIX) is known as the 'Fear Index' which can measure how worried traders are that the S&P 500 might suddenly drop within the next 30 days.
When the VIX starts moving higher, it is telling you that traders are getting nervous. When the VIX starts moving lower,...