A couple of points:
- There is no time restrictions on how long it takes the VIX to move to an extreme down/up as I interpret it. It could take several months or a few days. Doesn't matter. (It is my signal - I get to define the parameters).
- Normally 3 consecutive up/down days is enough to confirm a signal. In case of mixed closes (for example DJIA and S&P500 up and NASDAQ down) I would like to see 4 consecutive days.
Take a look:
Now a trend change can be short (2-3 weeks) or long (several months). So you want to use this with other tools as it may not always signal a trend change.... As I stated in a comment to a poster my cycle work leads me to believe this trend change will last into mid-April. Given the pullback on the VIX we may get a setup for another signal soon (VIX below 16.25 is a key area to trigger the signal, then we would wait for confirmation).
Hope this helps i n your understanding of this and how I use it.