CM_Williams_Vix_Fix (v5) + Optional Inverse

CM_Williams_Vix_Fix (v5) + Optional Inverse

This indicator is a modernized Pine v5 rewrite of Larry Williams’ classic Vix Fix, with an optional inverse mode to detect both capitulation lows (buy signals) and euphoric highs (sell signals).

🔎 What It Does

Vix Fix (Buy-side): Mimics the behavior of the VIX by detecting panic/fear spikes when price makes unusually deep lows relative to recent closes.

Inverse Vix Fix (Sell-side): Flips the logic to highlight euphoric/overbought spikes when price makes unusually high prints relative to recent closes.

Works on any timeframe or instrument — originally built for stocks/futures that don’t have their own VIX.

⚙️ Inputs

LookBack Period (pd): Number of bars to check for recent highs/lows.

Bollinger Band Length (bbl): Period for volatility bands.

Std Dev Multiplier (mult): Sensitivity of the bands.

Percentile Lookback (lb, ph, pl): Optional percentile thresholds for extra filters.

Show Range Lines (hp): Toggle percentile-based high/low markers.

Show StdDev Bands (sd): Toggle Bollinger-style envelopes.

Show Inverse (Sell) Version: Plots a red histogram for euphoric tops.

📊 Plots

Green Histogram: Vix Fix (fear/panic spikes).

Red Histogram: Inverse Vix Fix (euphoria spikes, optional).

Orange Lines: Percentile-based thresholds (optional).

Aqua Lines: Bollinger-style volatility bands (optional).

🧭 How to Use

Green Spikes (Buy Vix Fix): Potential market bottoms when fear is high.

Red Spikes (Inverse): Potential market tops when greed/euphoria is high.

Works best when combined with:

Trend filters (e.g. moving averages).

Market structure tools (e.g. support/resistance, FVGs, liquidity levels).

Other volatility/volume confirmations.

⚠️ Note: This is an indicator only (not a strategy). It highlights potential extremes in sentiment/volatility, but does not provide direct buy/sell orders. Always confirm with price action and risk management.