How ETF Traders Can Use the VIX Index

Investors and traders alike have surely run across the Volatility Index, commonly referred to as the VIX, in headlines from time to time. Many are quick to overlook this valuable indicator since they may not understand how it works or how to use it to help forecast stock prices. However, this so-called “fear index” offers insight into the direction of stock prices, both as a confirmation signal and as an aid in predicting stock market turning points.