A number of readers trying to apply the VIXEN setup have expressed frustration over the dynamic movement of the crosses so I'm posting this little before and after vignette from yesterday's action in GE to clarify my previous statements about VIXEN dynamics.
Charts are shown on 5 minute bars.
Note that on the left chart the VIX crosses up over GE at 14:55 as the MAs flatten. The dual signal lines are already downslope and the parabolics have been on a SELL since 14:15. With a re-confirming parabolics SELL at 14:55 this is a high probability short.
And, if you toggle over to VIXEN's alter ego, the NYAD you'll see that chart is clearly negative on all points.
If you are really the nervous type, then the GE price cross down through the 8/8 channel at 15:10 was a strongest possible short confirmation and/or a signal to add to the short position.
Flipping over to the left chart shows how GE turned out EOD, and we see that the VIX cross has now mysteriously migrated to 15:35, some 40 minutes later that the live chart position . This is the effect of the floating VIX scale relative to the GE price over time . . . and the reason these trades require a quick response.
There was high volume ugliness at the end of day and I've transposed the actual volume bars for GE onto the left hand chart to show the overwhelming negative momentum. It looked like GE was going to plunge all the way to S1, but it managed to stave off that collapse.
BTW, for readers interested in using the Schwab platform to trade the VIXEN, or other setups, Schwab has dropped the requirements for free access to the platform from 120 trades a year down to 36. That's a big drop and reflective of their desire to recapture some of the active traders they lost when CyberTrader was shut down. I get no perks from Schwab, I offer this info only as a service to my readers.