Welcome to KISS & Technical Set-Ups. In this section of the site we post examples of Technical SetUps as provided for members in real time on NorthmanTrader.com utilizing our KISS methodology.
Active Set-Ups are posted in member areas only.
To view previous setups please visit the Technical SetUps section of the website.
To gain access to active setups please visit Services.
For further background please see System Setups.
This technical setup was for long $VIX and was tracked publicly.
On July 24, when the $VIX was trading at 12 I published an article calling for a $VIXplosion, meaning a coming spike in volatility of size.
In the article I published, among other charts, this specific $VIX chart:
And I outlined the 24/25 gap fill target highlighted in the chart:
“While not all index gaps fill, not the same can be said for $VIX: All $VIX gaps fill eventually.
And there is an open gap in the 24/25 area courtesy Jerome Powell when he delivered his ‘flexible’ speech in early January leading to the renewed compression phase we’re in now, a clearly defined descending wedge pattern again.”
I then tracked this chart on twitter as the pattern was building:
Note it tagged the trend line again and then rejected one more time as part of the pattern build phase:
It was then on July 26 when I reiterated the pattern and 24/25 target on CNBC when $VIX was again trading at 12::
We then saw the target getting hit precisely in the days that followed:
All content is provided as information only and should not be taken as investment or trading advice. Any investments, trades, and/or speculations made in light of the ideas, opinions, and/or forecasts, expressed or implied herein, are committed at your own risk, financial or otherwise. For further details please refer to the disclaimer.
Categories: Technical SetUps