In a ongoing effort to examine the VIX, I ran a CCI version of the RSI popper 2 system. The CCI is also an oscillator, but with somewhat different parameters than the RSI. Also, I tested weekly bars rather than daily since I was looking for indications of the trend rather than day to day volatility. This CCI system actually performs extremely well on the daily bars, but as everyone knows, VIX is not a stock, trading only options which are impacted by time decay and other variables which tend to skew technical results. The goal here was to find an indication of momentum, and in that respect I believe the CCI popper2 system can be a useful tracking and timing tool.
Want to know more about the CCI? Here's a starting point.
Also see the follow up CCI article links on the Investopedia lower panel.
In case you've been living in a cave for the past 5 years and don't know about Woodie, the CCI guru, then check out the incredible plethora of free info, trading systems, charts, chat rooms, etc., etc. on the CCI. Woodie uses variations of a CCI 6 and 14 crossover system to trade anything and everything (daytrading, swing trading, etc) and his following is international.
His zero line rejection setup is reliable in multiple time frames and helps keep you on the right side of the trend. You can program his indicators on most trading platforms. . .but be forewarned. . .Woodie doesn't watch price bars . . .he only watches the indicators. . .and that requires a significant leap of faith for most traders.
I kind of cheat and watch both price bars and Woodie's CCI 6/14 setup in a separate chart window, much as I watch the NYAD and TICK.
Some FX traders I know swear by the system, others swear at it, but like every systematic technical approach to the markets, you need to learn it, practice it, and feel comfortable with it. It helps if the system makes money with a controllable drawdown.