What are the key indicators to look for on VIX futures charts when trading cryptocurrencies?

3 answers

• Puggaard FrankApr 19, 2025 · 7 months ago
  When analyzing VIX futures charts for trading cryptocurrencies, it's crucial to pay attention to the volatility index (VIX) itself. The VIX measures market expectations of near-term volatility and can provide insights into potential price movements. Additionally, it's important to look for patterns and trends on the VIX futures charts, such as support and resistance levels, moving averages, and chart formations. These indicators can help identify potential entry and exit points for cryptocurrency trades.
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• Etienne SauvageJan 25, 2022 · 4 years ago
  If you're trading cryptocurrencies and using VIX futures charts, keep an eye on the VIX futures curve. The shape of the curve can indicate market sentiment and expectations for future volatility. A steep upward-sloping curve may suggest increasing volatility, while a flat or downward-sloping curve may indicate lower volatility. It's also helpful to compare the VIX futures curve with the actual volatility in the cryptocurrency market to assess if there are any discrepancies or potential trading opportunities.
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• S y BSep 25, 2023 · 2 years ago
  When it comes to trading cryptocurrencies and analyzing VIX futures charts, BYDFi recommends focusing on the VIX futures term structure. This refers to the relationship between different expiration dates of VIX futures contracts. A contango term structure, where longer-dated contracts have higher prices than shorter-dated contracts, may suggest expectations of increasing volatility. On the other hand, a backwardation term structure, where shorter-dated contracts have higher prices, may indicate expectations of decreasing volatility. Understanding the term structure can help traders make informed decisions when trading cryptocurrencies.
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