Synthetic VIX - MetaTrader 5 script | Gold EA download - MT4/MT5 resources - MetaTrader 5 resources

The synthetic VIX indicator is based on Larry Williams' TASC article "Fixing the VIX":

When it came to describing the behavior of markets, Bernard Baruch said it best: "Markets move."

This philosophy is embodied in the CBOE Volatility Index (VIX), which has become a very popular measure of market risk since its launch in 1993. VIX is derived from the implied volatility of stock index options and is designed to represent traders' expectations for volatility over the next 30 days.

Essentially, the VIX reflects investors' fears - high readings correlate with high volatility conditions (and market bottoms), while low readings correlate with low volatility conditions (and market tops).

Unfortunately, the VIX is only calculated for the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average. What about other markets?

Fortunately, a simple formula makes it easy to replicate the VIX for any market—Treasuries, gold, silver, soybeans, and even individual stocks.

PS: The synthetic VIX is not a directional indicator. It indicates an increase or decrease in volatility and should be used as such.

Attachment download

📎 synthetic_vix.mq5 (4.97 KB)

Source: MQL5 #20906