💥 Pro Traders Hidden Indicator !
The CM_Williams_Vix_Fix is a custom technical analysis indicator created by Chris Moody (CM). It is often referred to as the "VIX for the stock market" but applied to individual stocks or crypto, emulating the Volatility Index (VIX) behavior on individual securities to identify potential bottoms (buy opportunities).
📌 Purpose:
Designed to identify market bottoms (mainly in downtrends) by mimicking VIX spikes—typically a sign of panic selling or high volatility.
📐 Key Components:
1. Input Source:
Usually applies to closing prices (close), but configurable.
2. Formula Core:
VixFix = (Highest Close over N periods - Current Low) / (Highest Close over N periods)
This creates a normalized "panic" signal based on how far the price drops from a recent high.
3. Parameters:
LookBackPeriod (default ~22): Number of candles to consider for highest close.
LookBackMultiplier (usually ~2.0): To amplify the signal's sensitivity.
Standard Deviation Length (default ~20): Used for dynamic upper/lower bands.
Percentile Levels or Bollinger Bands: Optional overlays for threshold setting.
4. Smoothing (optional):
Can apply EMA/SMA for smoother signals.
📊 Visual Output:
Plots a line or histogram of the VixFix value.
Shows thresholds or bands for potential signal levels (often based on std dev or percentiles).
Spikes above upper threshold often indicate a potential bottom.
🧠 Interpretation:
High spike = potential buy signal, suggesting capitulation or panic selling.
Works best in bearish trends or after sharp price drops.
Not a top indicator – it’s more focused on bottoms.
✅ Best Use Cases:
Bottom-fishing during sharp selloffs.
Confirmation with RSI, MACD, or divergence tools.
Applied on daily or 4h charts, commonly used in crypto and stocks.
