We know that VIX most of the time reflects the investor/traders sentiment. When VIX is higher it means lot of fear in the market and lower VIX indicates lack of fear in the market. The problem is the sentiment can be measured only Indices like Nifty as the Volatility Index VIX is derived from implied volatility of Options. In such a case VIX FIX comes handy to replicate the VIX behaviour in other instruments like Commodities, Forex, Stocks. William VIX FIX indicator provides a solution for creating synthetic VIX for any trading asset class.
Synthetic VIX or William VIX FIX Formula
WVF = (Higher high value (Close,22) – Low)/(Higher high value (Close,22))*100
The value 22 is choosen denotes 22 trading session in a month. And one can use VIX FIX
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Know more about William VIXFix indicator here
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