  
  Free Indicator

VIX Volatility Trend Analysis for TradingView

VIX Volatility Trend Analysis is a free TradingView indicator that plots VIX market volatility as a color-coded cloud on any US stock chart. Green means falling volatility (bullish); red means rising volatility (bearish). Built for day traders and swing traders who want volatility context without switching charts.

Built by Lane Dotson · Last updated April 22, 2022 · View on TradingView →

✓

This is a free indicator - Add it to your TradingView charts at no cost.
Add to TradingView →

WHAT IT DOES

Core Features

A cloud-based VIX trend visualization that shows you whether market volatility is rising or falling directly on your stock chart without switching to a VIX chart.

VIX Trend Cloud

The indicator displays a cloud that changes color based on the VIX trend direction. When the cloud is green, the VIX is trending down (volatility falling) which is bullish for stocks. When the cloud is red, the VIX is trending up (volatility rising) which is bearish for stocks. The cloud gives you a continuous visual read on the volatility environment behind any stock chart.

Trend Change Signals

When the VIX trend changes direction, the indicator plots a green or red line on the chart. Use these signals to confirm entries and exits, but do not use them alone. This should be a secondary confirmation tool in your trend analysis, as markets don’t always react perfectly to overall volatility changes.

Adjustable Signal Sensitivity

The signal setting controls how responsive the indicator is. Lower values (10–100) give earlier signals which are best for scalping. Higher values (100–500) give later, more confirmed signals which are better for swing trades. You can go higher for long swing trades. Recommended settings: 20, 60, 100, 500 and 1000.

Configurable VIX Source & MA Type

You can change the symbol used for calculations, allowing you to use a VIX from a different exchange, a different country’s VIX, or even another stock like TQQQ when trading an opposite mover like SQQQ so you can see the other symbol’s trend on the same chart. The moving average type is also configurable. The default was changed to RMA 10 for more reliable signals.

Inverse ETF Support

Over 50 inverse ETFs are built into the code so the indicator automatically flips the cloud and signal direction on inverse charts. If you find an inverse ETF showing backward signals, it can be added.

INTERPRETATION GUIDE

How to Read the VIX Cloud

Cloud Colors

Green cloud - VIX is trending down. Volatility is falling. Bullish for stocks — look for long entries.
Red cloud - VIX is trending up. Volatility is rising. Bearish for stocks — look for short entries or exits.
Cloud color change - VIX trend direction just reversed. Signals appear as green or red lines on the chart.

How to Trade With It

Use the cloud as a secondary confirmation for trades. When the cloud is green and your other indicators agree, you have a strong bullish setup. When the cloud is red and other indicators confirm, you have a strong bearish setup. Do not use this by itself. Sometimes stocks don’t react perfectly to overall market volatility, so always confirm with price action and other tools.

CONFIGURATION

Settings Overview

The indicator shares a similar settings structure with the VIX Reversal Scalper.

Main Settings

Setting	Default	Description
Signal Length	10	Controls cloud and signal responsiveness. Lower = more responsive (scalping). Higher = smoother (swing trading). Recommended: 20, 60, 100, 500, 1000.
MA Type	RMA	The type of moving average used for signal calculations. Default changed to RMA from HMA for more reliable signals.
Signal Symbol	VIX	The symbol used for trend calculations. Can be changed to a different exchange's VIX, another country's VIX, or another stock (e.g. TQQQ when trading SQQQ).

GOOD TO KNOW

Important Notes & Limitations

⚠ US stocks only. This indicator uses real-time VIX data which measures US stock market volatility. It should only be used on US stocks. It works somewhat for crypto but will not give signals when the US stock market is closed.

⚠ Do not use this by itself. Markets don't always react perfectly to overall market volatility. This should only be used as a secondary confirmation in your trading and trend analysis.

⚠ After-hours trading will show little to no cloud movement or signal changes due to the US stock market being closed.

FREE ON TRADINGVIEW

VIX Volatility Trend Analysis is Free to Use

Add it to your TradingView charts and start seeing the VIX trend directly on your stock chart today. No subscription required.

✓ 100% Free

✓ No Account Required

✓ All Future Updates

COMMON QUESTIONS

Frequently Asked Questions

The VIX Trend Analysis is a visual cloud that shows you the ongoing VIX trend direction as a continuous backdrop on your chart. The VIX Reversal Scalper generates discrete buy/sell signal points when the VIX changes direction. Use the cloud for overall trend context and the scalper for specific entry/exit signals — they work well together.

This indicator is designed for US stocks only. It uses VIX data which measures US stock market volatility. It works somewhat on crypto but will not update when the US stock market is closed. It is not suitable for forex.

Use 10–100 for scalping (more responsive cloud and earlier signals) and 100–500 for swing trading (smoother cloud, fewer signals). Recommended settings are 20, 60, 100, 500 and 1000 depending on your trading style.

Yes. You can change the symbol to a VIX from a different exchange, a different country's VIX, or even another stock. For example, you can set it to TQQQ when trading SQQQ to see the opposite mover's trend on the same chart.

No. This should be used as a secondary confirmation tool in your trading. Markets don't always react perfectly to overall volatility. Always confirm with price action and other indicators before entering a trade.

CHANGELOG

Release Notes

    April 22, 2022
  

Custom Symbol, MA Type & Default Update

Added the ability to change the VIX symbol and moving average type, updated the default to RMA 10 for more reliable signals, and fixed a code error for default settings.

What Changed

• Added ability to change the symbol used (different VIX, different exchange, another stock like TQQQ)

• Changed default from HMA 20 to RMA 10 for more reliable signals

• Added ability to change the type of moving average used for signal calculations

• Fixed a code error for default settings

EXPLORE MORE

Related Indicators

Free