The VIX is okay for longer term analysis but it doesn't always tell you how much much the market is moving during the day.
On January 24, we only saw a VIX reading of 36 but nearly a record number of turning points approaching pandemic levels when the VIX was in the 80's.
The Zig Zag indicator normalized for move of 1/3% of the previous day's closing value divided by the VIX gives us a good picture of historical volatility levels in the markets intra-day.
Comments