This is one of the most popular and highly rated volatility index (VIX) indicators on the market. It provides the same readings as the VIX does for stock indexes. However, this indicator works across all asset classes. VIX Fix Finds Market Bottoms. This indicator is not for inexperienced traders. Use it for day and swing trading.
MT5 Version – https://www.mql5.com/en/market/product/112284
Bernard Baruch summed it out best: “Markets fluctuate.” The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) is a widely used indicator of market risk that was created in 1993. The VIX is a measure of traders’ expected volatility over the next 30 days, based on the implied volatility of stock index options. The VIX measures investor fear, with high readings indicating high volatility (and market bottoms) and low readings indicating low volatility (and market tops).
Unfortunately, the VIX is only calculated for the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average. How about other markets?
Investor sentiment is more magnified at market bottoms than at tops. The VIX may be calculated for any market, including Treasury bonds, gold, silver, soybeans, and individual stocks, using a simple formula.