Crude Oil Volatility (OVX) - 14th November 2023 | @ 54 Days | + 6.27%
Last trade: + 6.27% | 'A' class signal detected in CBOE Crude Oil Volatility Index. Average wavelength of 54 days over 18 iterations since November 2021. Currently troughing.
The OVX, or CBOE Crude Oil Volatility Index, measures the market's anticipation of future fluctuations in crude oil prices. It is calculated based on the prices of options contracts for oil, which are used by investors as insurance against price swings. Higher OVX values indicate increased expected volatility, reflecting uncertain market conditions, while lower values suggest a more stable outlook. The index provides valuable insights into investors' sentiment and risk perception regarding oil prices.
ΣL Cycle Summary
A very ‘standard’ decline here, after the bullish ‘up-leg’ previously seen in the OVX, with the component around 54 days remaining clear and retaining it’s superb spectral characteristics. The trough in focus here may have occurred a few days ago and is certainly in line with the margin of time error, which is based upon average frequency modulation over the sample. The next peak of this component is expected toward the start of December.
Summary of the most recent trade enacted with this signal and according to the time prediction detailed in the previous post for this instrument, linked below.
Type: Sell - Crude Oil Volatility (OVX) 16th October 2023
Entry: 16th October 2023 @ 40.7
Exit: 14th November 2023 @ 38.15
Current Signal Status
Defining characteristics of the component detected over the sample period.
Time Frequency Analysis
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