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How to Trade the VIX 75 Index on TradingView – A Complete Guide

The CBOE Volatility Index, or VIX, has become a widely followed gauge of broad market volatility and investor sentiment. But the standard VIX only covers S&P 500 30-day expected volatility. For a view of longer-term volatility, some traders analyze the VIX 75 index on TradingView.

But what exactly is the VIX 75 and how do you go about trading it on TradingView? In this comprehensive guide, we’ll cover the definition of VIX 75, its potential trading advantages, things to keep in mind, and methods for analyzing and trading the VIX 75 using TradingView chart tools and broker integration.

Let’s dig into everything you need to know to trade the VIX 75 fear gauge on TradingView!

How to trade VIX 75 on TradingView

What is the VIX 75 Index?

The VIX 75 Index measures expected 30-day volatility of the S&P 500 calculated from SPX options expiring across the next 75 days. This provides a mid-term volatility outlook.

Just like the standard short-term VIX, the VIX 75 is an index measuring implied volatility rather than tradable instrument. But derivatives like VIX 75 futures allow traders to speculate on volatility movements.

The VIX 75 typically runs higher than the standard VIX since longer-dated option pricing incorporates higher uncertainty. But the two indexes generally trend together.

Potential Advantages of Trading the VIX 75

Here are some potential benefits of analyzing the VIX 75 rather than the standard VIX:

  • Provides a medium-termvols gauge vs short-term VIX
  • Arguably better predictor of volatility shifts and volatility skews
  • Immune to short-term volatility spikes that fade quickly
  • Reflects higher uncertainty in longer-dated options
  • More aligned with popular VIX ETPs that blend months

For position traders, the smoother VIX 75 may provide a better volatility trend read.

How Do You Trade the VIX 75 Index?

You cannot trade the VIX 75 directly, but can trade derivatives or ETPs:

  • Futures like /VXF75 allow trading VIX 75 moves
  • ETPs like VXX track blended VIX futures that include VIX 75
  • Options and spreads can be used to speculate on VIX 75 futures

So traders analyze VIX 75 moves on TradingView to inform futures, ETPs, and options trading strategies.

Analyzing VIX 75 Charts on TradingView

While you can’t trade the VIX 75 directly, TradingView provides insightful VIX 75 index charts:

  • Compare VIX 75 price swings vs the standard VIX index
  • Add key VIX 75 moving averages to identify trends and ranges
  • Analyze divergences between VIX 75 and S&P 500 to gauge frothiness
  • Use RSI, Bollinger Bands, and other indicators to spot extremes

VIX 75 chart analysis informs trading decisions on associated derivatives.

Trading VIX 75 Instruments on TradingView

To go beyond analysis and actually trade VIX 75 products, TradingView supports:

  • Charting /VXF75 futures or VXX ETP with live broker linking
  • Analyze options on VIX 75 futures using volatility tools
  • Screen for VIX 75 trading opportunities using scans
  • Employ strategies like calendar spreads between VIX and VIX 75 futures

Robust tool integration allows acting on VIX 75 trade ideas.

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Factors to Consider When Trading the VIX 75

Keep these considerations in mind when analyzing or trading the VIX 75:

  • VIX 75 less reactive to short spikes than standard VIX index
  • Understand impact of VIX futures curve structure and roll yield
  • Account for elevated volatility risk premium in farther out options
  • Consider using VIX/VIX 75 ratios or spreads to hedge signals
  • Combine volatility analysis with other metrics to time markets

VIX 75 trading requires nuance like other volatility products.

Key Takeaways for Trading the VIX 75 on TradingView

Let’s recap the key points covered about analyzing and trading VIX 75:

  • VIX 75 measures medium-term expected S&P 500 volatility
  • Traders turn to VIX 75 for clearer volatility trend perspective
  • VIX 75 price swings traded via futures, ETPs, and options
  • Analyze VIX 75 charts on TradingView to inform trade timing
  • Connect brokers to trade associated derivatives from TradingView
  • Use spreads and ratios to hedge pure VIX 75 directional bets

I hope this guide provides a solid foundation for actively trading the VIX 75 volatility index through TradingView chart tools and integrated brokers. Let me know if you have any other VIX or volatility trading questions!

Author: Dominic Walsh
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I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Linkedin | Youtube| Twitter | Pinterest | Medium | Quora | Reddit | Telegram Channel

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