Comparing Market And Volatility Index Momentums, Part 3 by Vitali Apirine
In part 1, we looked at using a momentum oscillator to compare the momentums of two markets for insights into those markets. In part 2, we looked at comparing the momentums of different stock market indexes. In this third and final part, we look at comparing the momentum of a volatility index against the momentum of the market to find out what it can tell us.
Comparing the momentums of different markets or indexes on the same graph can be useful. Traders can look for things like momentum crossovers, centerline crossovers, signal line crossovers, and divergences to help generate signals ...