VVIX:VIX Ratio

[Walshy]

Curious if anyone is aware of a VVIX:VIX ratio indicator on this forum? Something I could then add a standard Bollinger Band to. Thanks in advance.

 

[antwerks]

Curious if anyone is aware of a VVIX:VIX ratio indicator on this forum? Something I could then add a standard Bollinger Band to. Thanks in advance.

# === VIX / VVIX Ratio with Scaling === #

input symbol1 = "VIX";
input symbol2 = "VVIX";
input scaleFactor = 100;      # <— Adjust this to make the plot appear larger or smaller

# Fetch prices
def vix = close(symbol1);
def vvix = close(symbol2);

# Avoid division by zero
def ratio = if vvix != 0 then vix / vvix else Double.NaN;

# Scaled plot for visibility
plot RatioPlot = ratio * scaleFactor;
RatioPlot.SetDefaultColor(Color.CYAN);
RatioPlot.SetLineWeight(2);

# Label shows the TRUE ratio, not the scaled one
AddLabel(yes, "VIX/VVIX: " + AsText(ratio), Color.CYAN);
AddLabel(yes, "Scale x" + scaleFactor, Color.GRAY);

 

[Walshy]

# === VIX / VVIX Ratio with Scaling === #

input symbol1 = "VIX";
input symbol2 = "VVIX";
input scaleFactor = 100;      # <— Adjust this to make the plot appear larger or smaller

# Fetch prices
def vix = close(symbol1);
def vvix = close(symbol2);

# Avoid division by zero
def ratio = if vvix != 0 then vix / vvix else Double.NaN;

# Scaled plot for visibility
plot RatioPlot = ratio * scaleFactor;
RatioPlot.SetDefaultColor(Color.CYAN);
RatioPlot.SetLineWeight(2);

# Label shows the TRUE ratio, not the scaled one
AddLabel(yes, "VIX/VVIX: " + AsText(ratio), Color.CYAN);
AddLabel(yes, "Scale x" + scaleFactor, Color.GRAY);

Thanks much, @antwerks. Given that I want the "VVIX / VIX" ratio, I will change your "def ratio" line so it reads, "def ratio = if vix != 0 then vvix / vix else Double.NaN;"

 

[antwerks]

Thanks much, @antwerks. Given that I want the "VVIX / VIX" ratio, I will change your "def ratio" line so it reads, "def ratio = if vix != 0 then vvix / vix else Double.NaN;"

just adjust the scaler and you will be good as GOLD. Quick Rules You Can Use Tomorrow

Level	Ratio	Action (next 1–10 days)
VVIX/VIX ≥ 9.0	VVIX/VIX	Buy VIX calls or UVXY → expect 50–200% spike
VVIX/VIX ≤ 5.8	VVIX/VIX	Sell VIX premium / buy SPY → calm is coming
VIX > 35 & VIX/VVIX > 0.30	VIX/VVIX	Cover shorts, buy SPY → bounce very likely

Bottom line: Put VVIX/VIX on your main screen and watch 5.8 and 9.0 like a hawk. Only glance at VIX/VVIX when the VIX is already in the 30s–40s and you’re hunting the exact top.

 

[Walshy]

just adjust the scaler and you will be good as GOLD. Quick Rules You Can Use Tomorrow

Level	Ratio	Action (next 1–10 days)
VVIX/VIX ≥ 9.0	VVIX/VIX	Buy VIX calls or UVXY → expect 50–200% spike
VVIX/VIX ≤ 5.8	VVIX/VIX	Sell VIX premium / buy SPY → calm is coming
VIX > 35 & VIX/VVIX > 0.30	VIX/VVIX	Cover shorts, buy SPY → bounce very likely

Bottom line: Put VVIX/VIX on your main screen and watch 5.8 and 9.0 like a hawk. Only glance at VIX/VVIX when the VIX is already in the 30s–40s and you’re hunting the exact top.

Interesting action rules. If you include standard Bollinger Bands on the ratio, when the ratio pokes above or below the BB, it points to a short term reversal coming.