The Highly Accurate Trading Indicator to Predict Market Bottoms

🔍 What Is the Williams VIX Fix and How It Works

The Williams VIX Fix is simply a trading indicator for those trying to predict market bottoms with precision. Created by Chris Moody on TradingView, it helps traders identify when the market might be about to reverse after a major selloff.

This trading indicator identifies market bottoms by analyzing volatility or fear in the market.

Markets usually hit bottom when volatility spikes to extreme levels. When fear and panic reach their peak, the VIX Fix trading indicator flashes green, signaling a potential bottom and a rebound could be near.

You’ll see it as bars at the bottom of your chart:

• Longer bars mean higher volatility.

• Shorter bars mean calmer conditions.

When those bars suddenly stretch upward and the indicator flashes green, it’s a sign the market may have overreacted on the downside. Historically, these signals have appeared near the bottom of sharp drops in assets like Bitcoin $BTC.X ( ▼ 1.66% ) , Tesla $TSLA ( ▼ 1.26% ) , and even the S&P 500.

The beauty of this trading indicator is that it works across all markets, including crypto, stocks, or Forex, and performs best on higher timeframes like the 4-hour or daily chart.

Adding it to your TradingView setup is simple:

1. Go to the Indicators tab.

2. Search for “cm Williams VIX Fix Finds Market Bottoms.”

3. Choose the version by Chris Moody.

You don’t need to adjust anything. The default settings are already optimized.

Still, like any trading indicator, the VIX Fix isn’t perfect. It can flash multiple green signals before a true bottom forms, and sometimes it gives false alerts.

That’s why traders rarely use it alone. The real edge comes when it’s combined with other tools that confirm price strength or weakness.

In short, the Williams VIX Fix is a volatility-based trading indicator that helps you predict market reversals more accurately. But to make it truly powerful, it needs more confirmations.

Let’s find out in the next part!

⚙️ High-Accuracy Strategies Using the VIX Fix

Nothing is ever 100% and this indicator isn’t either. It also has its flaws.

The first problem is that sometimes it gives false signals. Even when the indicator flashes green, the short-term price trend can still move down.

Secondly, it often gives multiple signals. When you apply this tool to a live chart, it can be hard to know which signal actually marks the real bottom.

Don’t worry. I’ll show you how to solve this problem.

To get high accuracy, you can combine the VIX Fix trading indicator with others that confirm momentum and market conditions. The two most effective setups use the Stochastic Oscillator and Order Blocks.

Strategy 1: VIX Fix + Stochastic Oscillator

When the trading indicator flashes green, it signals that volatility has peaked. The next step is to check the Stochastic Oscillator to see if momentum aligns.

Here’s how it works:

1. Wait for the VIX Fix trading indicator to flash a green signal.

2. Open your Stochastic Oscillator. If the blue line drops into the oversold zone, you have a possible bottom.

3. When the blue line crosses above the orange line at the bottom level (the support line equal to 20.0) and the candle closes, that’s your confirmation to buy.

However, if the blue line crosses the orange line at the bottom level but the bar on the VIX Fix is no longer green, that’s a clear filter signal that it’s not the real bottom. This is also how I filter out false or noisy signals.

However, you’ll notice that my Stochastic looks quite different from yours, right?

Of course, because I’ve customized it based on my own settings. I’ve reduced the unnecessary crossovers between the blue line and the orange line that usually appear in the default setup.

And here are the settings of the indicator:

The specific settings for each indicator will be shared in our Premium articles.

This post is just the beginning and it’s free.

But if you want to explore more advanced indicator settings with higher accuracy, you can subscribe to Premium here:

In general, this method is widely used by traders who want to predict market reversals with better precision and higher reward ratios.

Many traders say this combination offers cleaner entries and fewer false signals than using either tool alone. In strong trends or short pullbacks, it still performs well.

Strategy 2: VIX Fix + Order Blocks

Another high-accuracy setup combines the trading indicator with order block analysis.

Order blocks represent areas where large traders have previously entered or exited positions, where the price often reacts again.

To use this approach:

1. Use an Order Block Detector tool (like Lux Algo’s indicator) to find nearby zones.

2. Wait for the price to touch an order block.

3. Watch for a green flash on the VIX Fix trading indicator.

4. Confirm with the Stochastic Oscillator that it’s oversold and crossing upward.

If all these conditions align, it’s a high-probability buy signal. Set your stop loss at the middle of the order block and aim for a take profit that’s double your stop.

Bonus: Predicting Market Tops

A modified version of this trading indicator also helps predict market tops. Created by Aaron Stone on TradingView, it’s called “cm Williams VIX Fix Find Market Tops and Bottoms.”

In this version, green shows potential tops and red shows possible bottoms.

Although this version works, traders often report that bottom signals remain more reliable. So many prefer sticking to the original version that focuses on finding market bottoms.

⚡ Key Takeaway

• The Williams VIX Fix is a powerful volatility-based trading indicator: It helps traders predict market bottoms by identifying moments of extreme fear and volatility spikes. When it flashes green, it often signals a possible reversal is near.

• No indicator is perfect, and VIX Fix is no exception: It can give false or multiple signals, which can confuse traders about the true bottom. That’s why confirmation from other tools is essential before making a move.

• Combining VIX Fix with the Stochastic Oscillator increases accuracy: When both indicators align, VIX Fix turns green and the Stochastic shows a bullish crossover below 20, it strengthens the signal to predict market rebounds more reliably.

• Using VIX Fix with Order Blocks improves timing and confidence: This combination helps identify precise entry zones where institutional traders are likely active, filtering out noise from weak or fake signals.

• The modified VIX Fix can also detect market tops: While it can help identify overbought conditions, traders find it more effective for bottoms than tops. The original version remains the go-to for spotting strong reversal points.

• Premium settings can refine your signals further: Custom indicator settings help reduce noise and improve accuracy, especially for traders who rely on trading indicators to make timely and data-driven decisions.

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