What it is: 30-day implied volatility of the S&P 500 options market.
Why it matters: Rising VIX = risk aversion and wider ranges; falling VIX = calmer, trend-friendly conditions.
How to use: Scale position size inversely to VIX; tighten risk in >25 regimes.
Trading impact: Higher VIX typically widens FX ranges and reduces trend reliability.
Positioning tip: Favor mean-reversion in high VIX; favor trend-following in low VIX.
Asset bias by range: Low VIX favors equities and carry FX; Elevated/High VIX favors cash, gold, JPY/CHF, and lower beta.
Range guide: <16 Calm • 16–20 Normal • 20–25 Elevated • >25 Stress.
Analyzing market conditions...
What it is: A regime label derived from volatility and sentiment alignment.
Why it matters: It defines the dominant market environment for the session.
How to use: Use it as the top-level filter for bias and to resolve conflicting signals.
Asset bias by regime: Risk-On favors equities, high beta FX (AUD/NZD), and cyclicals. Risk-Off favors cash, bonds, gold, JPY/CHF.
Safe Haven Flow (Daily): 1-day flow composite (Gold + JPY + CHF + USD). Inflow = defensive tone; Outflow = risk-on tilt. Flow does not equal 52W level.
Risk Appetite (Daily): Based on risk assets vs. safe havens. Weak = defensive stance.
What it is: A 0–100 sentiment gauge built from price momentum, breadth, volatility, and risk appetite signals.
Why it matters: Extremes often coincide with crowded positioning and potential reversals.
How to use: Use <25 as risk-off confirmation and >75 as late-cycle risk-on; combine with regime and trend.
What it is: Crypto sentiment composite (momentum, volatility, flow, and dominance proxies).
Why it matters: Crypto regimes swing faster; extreme readings often precede sharp reversals.
How to use: Treat <20 as capitulation risk and >80 as froth; confirm with trend and liquidity.