VixTrix

VixTrix - Because markets move in both directions.

VixTrix was born from a fundamental limitation in traditional volatility indicators: they only measure downside panic, completely missing the greed-driven extremes that form market tops.

How It Works:

Dual-Component Analysis:

vixBear = Panic selling intensity (distance from recent highs)

vixBull = FOMO buying intensity (distance from recent lows)

Oscillator = vixBear - vixBull = Net fear/greed imbalance

When the oscillator is positive, fear dominates (potential bottom forming). When negative, greed dominates (potential top forming).

Professional-Grade Filtering:
The magic happens with the symmetric RMS (Root Mean Square) bands. Unlike fixed percentage bands or standard deviation, RMS:

Creates mathematically symmetric positive/negative thresholds

Naturally adapts to changing volatility regimes

Provides statistical significance to extremes

VixTrix also adds selectable MA smoothing for the RMS calculation:

WMA (default): Balanced – middle-ground approach

VWMA: Volume-weighted – filters low-volume noise

EMA: Responsive – catches quick reversals

SMA: Stable – for swing trading

HMA: Fast and smooth – ideal for day trading

Signals require triple confirmation:

Statistical Extreme: Oscillator beyond RMS band

Price Action Confirmation: Correct candle color (bullish for bottoms, bearish for tops)

Momentum Continuation: Oscillator still moving toward extreme (exhaustion)

This multi-filter approach reduces premature entries and false signals while maintaining early positioning at potential reversal points.

Why This Matters for Your Trading:

In bull markets, traditional fear indicators sit near zero, giving no warning of impending tops.

VixTrix identifies when greed becomes excessive – when FOMO buying reaches statistical extremes that often precede corrections.

In range-bound markets, VixTrix excels at identifying overreactions in both directions, providing high-probability mean reversion opportunities.

During crashes, it captures the panic selling with the same precision as VixFix, but with better timing through its momentum confirmation.

VixTrix spots continuations through:

"No Signal" = Healthy Trend – Oscillator stays between RMS bands (no exhaustion)

Failed Extremes – Touches band but no triple confirmation = trend likely continues

Hidden Divergence – Price makes higher low while oscillator makes shallower low = uptrend continues

Controlled Emotions – Oscillator negative but not extreme in uptrends (greed present but not excessive)

Key Insight: When VixTrix doesn't give a signal during a pullback, institutions aren't panicking – they're just pausing before resuming the trend.

Green columns = Bullish exhaustion (potential bottoms)

Red columns = Bearish exhaustion (potential tops)

Golden RMS bands = Dynamic thresholds adapting to current volatility

Background highlights = Active signal conditions

The Result: A professional-grade oscillator that works in all market conditions – trending up, trending down, or ranging – by measuring the complete emotional spectrum driving price action.