OPEN-SOURCE SCRIPT
VIX + ADX - TREND or MEAN REVERSION
VIX + ADX · MARKET REGIME
*Instantly identify whether the market is respecting its levels — or entering a trend / panic phase.*
🧭 VIX + ADX · Market Regime
This indicator combines two complementary data sources — the **VIX** (S&P 500 implied volatility index) and the **ADX** (Average Directional Index) — to help you qualify the current market regime in real time:
- ✅ Is the market **calm and ranging**? → Options levels are respected, mean-reversion and volatility-selling strategies are favored
- ⚠️ Is the market **trending**? → Key levels are starting to break, be cautious with counter-directional positions
- 🚨 Is the market in **panic**? → Volatility is spiking, options dealers are hedging in one direction and amplifying the move
---
📊 Two Curves, One Clear Logic
🔴🟠🟢 VIX Curve — The Fear Gauge
The VIX measures the 30-day implied volatility of the S&P 500. Think of it as the market's thermometer.
| Color | VIX Zone | Signal |
| 🟢 **Green** | VIX < 20 | Calm market · Options levels (gamma walls, key strikes, Max Pain) are respected · Ideal for range strategies and volatility selling |
| 🟠 **Orange** | VIX 20–30 | Rising tension · RISK OFF · Market is looking for direction · Reduce exposure, avoid selling vol |
| 🔴 **Red** | VIX > 30 | Panic · Market flush · Options levels no longer hold · Survival mode |
**Horizontal levels:**
- `- - -` Orange dashed line at **20**: RISK OFF threshold
- `───` Red solid line at **30**: Panic threshold
---
🔵🔷🔴 ADX Curve — The Trend Strength Meter
The ADX measures the **intensity** of a trend, regardless of its direction (up or down). It doesn't tell you whether the market is rising or falling — it tells you **how strongly** it is doing so.
| Color | ADX Zone | Signal |
| 🔵 **Sky Blue** | ADX < 30 | No established trend · Market is ranging · Technical levels are being respected |
| 🔷 **Indigo** | ADX 30–40 | Trend is confirming · Directionality is building · Watch out for sharp reversals |
| 🔴 **Red** | ADX > 40 | Very strong trend · Powerful momentum · Market is in extension mode |
**Horizontal levels:**
- `·····` Indigo dotted line at **30**: Trend beginning
- `·····` Red dotted line at **40**: Strong trend confirmed
🎯 How to Trade With This Indicator
Scenario 1 — ✅ Green VIX + Blue ADX (The Range Trader's Sweet Spot)
> *VIX < 20 and ADX < 30*
This is the ideal regime for non-directional strategies:
- Prices tend to **revert to their mean**
- **Options levels** (key strikes, gamma walls, Max Pain) act as price magnets
- Ideal for **theta trading**: straddle selling, iron condors, credit spreads
- Strategy: sell volatility, fade the range extremes, play bounces off supports and resistances
Scenario 2 — ⚠️ Orange VIX + Indigo ADX (Caution — Regime Shift in Progress)
> *VIX between 20 and 30, ADX between 30 and 40*
The market is transitioning between regimes:
- Avoid initiating new short-volatility positions
- If you're already in a range trade, **reduce size** or tighten stops
- Wait for confirmation: if VIX drops back below 20 → calm returns; if VIX pushes toward 30 → prepare for a breakout
Scenario 3 — 🔴 Red VIX + Red ADX (Panic / Strong Trend)
> *VIX > 30 and/or ADX > 40*
The market is in strong directional mode:
- **Do not sell volatility** — you will take the full brunt of the move
- Technical supports and resistances are often ignored
- If you are trading with the trend (watch DI+ or DI− dominance): let it run with a trailing stop
- **VIX spikes above 30** often coincide with capitulation points → potential reversal when VIX starts pulling back
Maximum Alert — Both Curves Red Simultaneously
> *VIX > 30 AND ADX > 40*
This is the highest-alert signal: extreme volatility + very strong trend. This occurs during crashes, violent sell-offs, or explosive short squeezes. **Do not trade against the move.** Wait for VIX to drop back below 30 and ADX below 40 before resuming normal activity.
---
📐 Reading Trend Direction With DI+ / DI−
*(Enabled in settings)*
ADX alone does not tell you whether the market is going up or down. To get direction, enable the **DI+ and DI−** lines:
- **DI+ > DI−** → **Bullish** pressure → if ADX is strong, an uptrend is in play
- **DI− > DI+** → **Bearish** pressure → if ADX is strong, a downtrend is in play
- DI+ / DI− crossover = **potential reversal signal** (confirm with VIX behavior)
📝 Important Notes
- The **VIX is CBOE data** available on TradingView via the `VIX` symbol. It is most relevant for US market-linked assets (S&P 500, Nasdaq, and correlated instruments).
- The **ADX is calculated on the active chart** (whatever symbol and timeframe you have selected). You can therefore use this indicator on any asset: indices, stocks, crypto, forex, commodities.
- This indicator is a **context tool**, not a standalone trading system. Use it to **filter** your entry signals, not to generate them.
- On **short timeframes** (< 1h), the VIX moves slowly intraday — the ADX will be the most dynamic signal. On daily/weekly timeframes, both are equally relevant.
- This indicator works best when used alongside **price action analysis**, volume, and your preferred entry/exit methodology.
---
💡 Quick Reference Card
| VIX | ADX | Regime | Recommended Approach |
|---|---|---|---|
| 🟢 < 20 | 🔵 < 30 | ✅ Calm / Range | Sell vol · Fade extremes · Play options levels |
| 🟢 < 20 | 🔷 30-40 | 🟡 Directional | Watch for breakout · Trail stops |
| 🟠 20-30 | 🔷 30-40 | ⚠️ Risk Off | Reduce size · Avoid new vol selling |
| 🔴 > 30 | 🔴 > 40 | 🚨 Panic | No vol selling · Trade with trend only · Wait for flush |
⚠️ Disclaimer
*This indicator is provided for educational and informational purposes only. It does not constitute investment advice. Trading involves a risk of capital loss. Always apply proper risk management.*
🔓 Open Source
Source code is freely available and open to modification. Feel free to fork it, improve it, and share your versions with the community.
*Created by Guillaume*
---
*Instantly identify whether the market is respecting its levels — or entering a trend / panic phase.*
🧭 VIX + ADX · Market Regime
This indicator combines two complementary data sources — the **VIX** (S&P 500 implied volatility index) and the **ADX** (Average Directional Index) — to help you qualify the current market regime in real time:
- ✅ Is the market **calm and ranging**? → Options levels are respected, mean-reversion and volatility-selling strategies are favored
- ⚠️ Is the market **trending**? → Key levels are starting to break, be cautious with counter-directional positions
- 🚨 Is the market in **panic**? → Volatility is spiking, options dealers are hedging in one direction and amplifying the move
---
📊 Two Curves, One Clear Logic
🔴🟠🟢 VIX Curve — The Fear Gauge
The VIX measures the 30-day implied volatility of the S&P 500. Think of it as the market's thermometer.
| Color | VIX Zone | Signal |
| 🟢 **Green** | VIX < 20 | Calm market · Options levels (gamma walls, key strikes, Max Pain) are respected · Ideal for range strategies and volatility selling |
| 🟠 **Orange** | VIX 20–30 | Rising tension · RISK OFF · Market is looking for direction · Reduce exposure, avoid selling vol |
| 🔴 **Red** | VIX > 30 | Panic · Market flush · Options levels no longer hold · Survival mode |
**Horizontal levels:**
- `- - -` Orange dashed line at **20**: RISK OFF threshold
- `───` Red solid line at **30**: Panic threshold
---
🔵🔷🔴 ADX Curve — The Trend Strength Meter
The ADX measures the **intensity** of a trend, regardless of its direction (up or down). It doesn't tell you whether the market is rising or falling — it tells you **how strongly** it is doing so.
| Color | ADX Zone | Signal |
| 🔵 **Sky Blue** | ADX < 30 | No established trend · Market is ranging · Technical levels are being respected |
| 🔷 **Indigo** | ADX 30–40 | Trend is confirming · Directionality is building · Watch out for sharp reversals |
| 🔴 **Red** | ADX > 40 | Very strong trend · Powerful momentum · Market is in extension mode |
**Horizontal levels:**
- `·····` Indigo dotted line at **30**: Trend beginning
- `·····` Red dotted line at **40**: Strong trend confirmed
🎯 How to Trade With This Indicator
Scenario 1 — ✅ Green VIX + Blue ADX (The Range Trader's Sweet Spot)
> *VIX < 20 and ADX < 30*
This is the ideal regime for non-directional strategies:
- Prices tend to **revert to their mean**
- **Options levels** (key strikes, gamma walls, Max Pain) act as price magnets
- Ideal for **theta trading**: straddle selling, iron condors, credit spreads
- Strategy: sell volatility, fade the range extremes, play bounces off supports and resistances
Scenario 2 — ⚠️ Orange VIX + Indigo ADX (Caution — Regime Shift in Progress)
> *VIX between 20 and 30, ADX between 30 and 40*
The market is transitioning between regimes:
- Avoid initiating new short-volatility positions
- If you're already in a range trade, **reduce size** or tighten stops
- Wait for confirmation: if VIX drops back below 20 → calm returns; if VIX pushes toward 30 → prepare for a breakout
Scenario 3 — 🔴 Red VIX + Red ADX (Panic / Strong Trend)
> *VIX > 30 and/or ADX > 40*
The market is in strong directional mode:
- **Do not sell volatility** — you will take the full brunt of the move
- Technical supports and resistances are often ignored
- If you are trading with the trend (watch DI+ or DI− dominance): let it run with a trailing stop
- **VIX spikes above 30** often coincide with capitulation points → potential reversal when VIX starts pulling back
Maximum Alert — Both Curves Red Simultaneously
> *VIX > 30 AND ADX > 40*
This is the highest-alert signal: extreme volatility + very strong trend. This occurs during crashes, violent sell-offs, or explosive short squeezes. **Do not trade against the move.** Wait for VIX to drop back below 30 and ADX below 40 before resuming normal activity.
---
📐 Reading Trend Direction With DI+ / DI−
*(Enabled in settings)*
ADX alone does not tell you whether the market is going up or down. To get direction, enable the **DI+ and DI−** lines:
- **DI+ > DI−** → **Bullish** pressure → if ADX is strong, an uptrend is in play
- **DI− > DI+** → **Bearish** pressure → if ADX is strong, a downtrend is in play
- DI+ / DI− crossover = **potential reversal signal** (confirm with VIX behavior)
📝 Important Notes
- The **VIX is CBOE data** available on TradingView via the `VIX` symbol. It is most relevant for US market-linked assets (S&P 500, Nasdaq, and correlated instruments).
- The **ADX is calculated on the active chart** (whatever symbol and timeframe you have selected). You can therefore use this indicator on any asset: indices, stocks, crypto, forex, commodities.
- This indicator is a **context tool**, not a standalone trading system. Use it to **filter** your entry signals, not to generate them.
- On **short timeframes** (< 1h), the VIX moves slowly intraday — the ADX will be the most dynamic signal. On daily/weekly timeframes, both are equally relevant.
- This indicator works best when used alongside **price action analysis**, volume, and your preferred entry/exit methodology.
---
💡 Quick Reference Card
| VIX | ADX | Regime | Recommended Approach |
|---|---|---|---|
| 🟢 < 20 | 🔵 < 30 | ✅ Calm / Range | Sell vol · Fade extremes · Play options levels |
| 🟢 < 20 | 🔷 30-40 | 🟡 Directional | Watch for breakout · Trail stops |
| 🟠 20-30 | 🔷 30-40 | ⚠️ Risk Off | Reduce size · Avoid new vol selling |
| 🔴 > 30 | 🔴 > 40 | 🚨 Panic | No vol selling · Trade with trend only · Wait for flush |
⚠️ Disclaimer
*This indicator is provided for educational and informational purposes only. It does not constitute investment advice. Trading involves a risk of capital loss. Always apply proper risk management.*
🔓 Open Source
Source code is freely available and open to modification. Feel free to fork it, improve it, and share your versions with the community.
*Created by Guillaume*
---
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Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, alım satım veya diğer türden tavsiye veya öneriler anlamına gelmez ve teşkil etmez. Kullanım Koşulları bölümünde daha fazlasını okuyun.
Açık kaynak kodlu komut dosyası
Gerçek TradingView ruhuyla, bu komut dosyasının mimarı, yatırımcıların işlevselliğini inceleyip doğrulayabilmesi için onu açık kaynaklı hale getirdi. Yazarı tebrik ederiz! Ücretsiz olarak kullanabilseniz de, kodu yeniden yayınlamanın Topluluk Kurallarımıza tabi olduğunu unutmayın.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, alım satım veya diğer türden tavsiye veya öneriler anlamına gelmez ve teşkil etmez. Kullanım Koşulları bölümünde daha fazlasını okuyun.