Williams VIX For Bottoms [DCD]

Williams VIX Original - Authentic Volatility Fear Gauge

What This Indicator Does

The Williams VIX Fix measures market fear by calculating how far current lows deviate from recent highs, identifying potential market bottoms during high volatility periods. This implementation provides Larry Williams' original formula in its purest form.

How It Works

Core Formula:

VIX Fix = ((Highest High over 22 periods - Current Low) / Highest High over 22 periods) × 100

The calculation process:

• Measures Relative Distance: Compares current low to highest high over lookback period
  
• Converts to Percentage: Normalizes values for cross-market comparison
  
• Applies Statistical Analysis: Uses Bollinger Bands (2 std dev) around VIX Fix values
  
• Filters with Percentiles: 85th percentile threshold removes noise
  

Signal Generation

Green Flash Signals trigger when either condition is met:

• VIX Fix exceeds upper Bollinger Band (2 standard deviations above 20-period MA)
  
• VIX Fix exceeds Range High (85th percentile of recent values)
  

This dual-condition approach reduces false signals while capturing genuine volatility spikes.

What Makes This Original

• Pure Formula Implementation: Uses Williams' exact original calculation without modifications
  
• Dual Confirmation System: Combines Bollinger Bands with percentile analysis
  
• Professional Visualization: Histogram display, background highlighting, and live value table
  
• Comprehensive Alerts: Signal start/end notifications plus Green Flash alerts
  

How to Use

Primary Purpose: Spot high-probability reversal zones during market fear climaxes

Signal Interpretation:

• Green triangle + background highlight = High volatility reversal zone
  
• Higher VIX Fix values = Stronger fear/better reversal potential
  
• Use with price action confirmation for best results
  

Optimal Settings:

• Timeframes: 4H, Daily, Weekly
  
• Markets: All (stocks, crypto, forex, commodities)
  
• Combine with support levels and candlestick patterns
  

Key Parameters:

• VIX Fix Length (22): Lookback period for highest high
  
• Std Dev Multiplier (2.0): Bollinger Band sensitivity
  
• Percentile High (0.85): Only top 15% of readings trigger signals
  

The VIX Fix excels at identifying market fear climaxes that coincide with significant price bottoms, making it valuable for swing traders seeking high-probability entries during market stress.