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Universal Volatility Compass

Universal Volatility Compass (UVC): Navigate any asset market cycle with confidence

Since its introduction in 1993, the CBOE Volatility Index (VIX) has been widely used as a gauge of market risk and investor fear in the stock market. Higher VIX readings indicate increased volatility and often coincide with market bottoms, while lower readings signal relief and a market peak.

But what about the vast markets beyond the major indexes like the S&P 500, Nasdaq, and Dow, such as commodities, forex, cryptocurrencies, and even individual stocks? How can traders effectively gauge fear and spot potential turning points in these diverse markets?

The emergence of UVC

That's where Universal Volatility Compass (UVC) comes in - a powerful custom MT5 indicator inspired by Larry Williams' groundbreaking "Synthetic VIX" or "Williams VIX Fix" (WVF) . It's not just another indicator - it's a truly groundbreaking tool that extends the valuable insights of the VIX to all asset classes .

UVC replicates the exact behavior of the real VIX with a simple and elegant formula, abstracting the complexities of options derivative calculations. As demonstrated by Larry Williams himself, the volatility, level, timing and magnitude of UVC are virtually identical to the traditional VIX. This allows you to:

• Identifying an impending market bottom: Similar to the VIX in the stock market, the UVC consistently rises significantly higher as a market bottom approaches, often accompanied by larger intraday fluctuations (a classic sign of capitulation and fear).

• Identifying potential market peaks: Conversely, low UVC readings often coincide with important market peaks and indicate periods of low volatility and market comfort.

• Gain Universal Insights: Whether you're analyzing Treasuries, Gold, Oil, or your favorite stock, UVC uncovers universal cycles of market activity , shedding light on the inner workings of markets and their likely next moves. These volatility cycles are the same regardless of asset.

  
  

Enhanced UVC for the Modern Trader

I've enhanced this great foundation for the modern trader by providing percentile-based highlight bars to visually accentuate key numbers. These intuitive cues allow you to identify when an asset's volatility is signaling a potential turning point, faster than ever before.

While the Universal Volatility Compass is expertly tuned for daily charts , its exceptional versatility also shines on intraday timeframes , providing critical insights for shorter-term traders. While the default settings provide a robust starting point, the true power of UVC lies in its adaptability. You can easily tweak the settings to suit your preferred asset classes and trading styles, ensuring optimal performance across a diversified portfolio.

Don't let market fluctuations catch you off guard. Equip your trading tools with the Universal Volatility Compass and gain a powerful, universal lens to market dynamics and navigate volatility with unprecedented understand clarity.