Contango Indicator

Real-time VIX futures term structure monitor on TradingView

📚 From the SPX Mastery Series by Russell Clark

Definition

Russell Clark's custom TradingView indicator that monitors VIX futures term structure in real-time, showing whether conditions are in contango (calm, favoring aggressive plays) or backwardation (fear, favoring hedges and strategy pauses). Green = contango/safe, Red = backwardation/risk, Yellow = flat/transition. Part of the pre-close scanning workflow used across all SPX Mastery strategies.

Formula / Rules

Signal outputs: Green (contango = VIX futures sloping upward), Red (backwardation = VIX futures inverted), Yellow (flat/neutral)

How It Works

The indicator pulls live VIX futures term structure data and compares near-term vs. longer-term VIX futures prices. When near-term VIX futures cost less than longer-term ones (normal/contango), markets are calm and all IC tiers are typically available. When near-term VIX futures cost more than longer-term ones (backwardation), fear is elevated and a spike is likely imminent. The indicator is checked during the pre-close 5–15 minute scan, alongside EDR and VIX level, to confirm trade quality before placing Iron Condors or Covered Calendar Calls.

Source

Theta Time Shift; VIX Hedge Vanguard

Related Terms

Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss. Always paper trade first.