This indicator displays the VIX term structure as a spatial curve directly on the chart, allowing you to instantly identify whether the volatility market is in contango or backwardation.
It shows the relationship between different VIX maturities (9D, 30D, 3M, 6M, 1Y) as a single curve.
It also shows some statistics and helps with market detection:
How to Use:
The curve shows the "shape" of volatility expectations across time. An upward-sloping curve (contango) means calm markets where longer-term volatility is priced higher than near-term. A downward-sloping curve (backwardation) shows market stress, where near-term volatility spikes above longer-term expectations.
Use the statistical tables to understand whether current ratios are at historical extremes (high percentile rank) or lows (low percentile rank), helping you gauge whether volatility structures are stretched or compressed.
Perfect for:
In the example above, I've added a chart with
VIX, 
VIX9D, VIX3M and $CBOE:VIX6M. It is possible to see that although they are still in backwardation (short term vix is lower than long term), it might be close to flip. This kind of situation deserve extra attention. You can set alerts to when it flips.
This is a simple but useful indicator. Let me know if you have any questions!
It shows the relationship between different VIX maturities (9D, 30D, 3M, 6M, 1Y) as a single curve.
It also shows some statistics and helps with market detection:
- Historical percentile rankings for key VIX ratios
- Real-time min/max/average/median values over lookback period
- Current VIX term values with regime indicators
- Understand where current conditions sit relative to historical context
- Automatic identification of contango vs backwardation states
- Visual indicators showing which part of the curve is inverted
- Optional information guide explaining market states and trading implications
How to Use:
The curve shows the "shape" of volatility expectations across time. An upward-sloping curve (contango) means calm markets where longer-term volatility is priced higher than near-term. A downward-sloping curve (backwardation) shows market stress, where near-term volatility spikes above longer-term expectations.
Use the statistical tables to understand whether current ratios are at historical extremes (high percentile rank) or lows (low percentile rank), helping you gauge whether volatility structures are stretched or compressed.
Perfect for:
- Volatility traders and options strategists
- VIX futures and options traders
- Understanding market fear and complacency levels
- Timing volatility trades based on term structure
In the example above, I've added a chart with
VIX, VIX9D, VIX3M and $CBOE:VIX6M. It is possible to see that although they are still in backwardation (short term vix is lower than long term), it might be close to flip. This kind of situation deserve extra attention. You can set alerts to when it flips. This is a simple but useful indicator. Let me know if you have any questions!
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Henrique Wealth Academy: skool.com/be-limitless
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Henrique Wealth Academy: skool.com/be-limitless
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.