Volatility is creeping back. If you're day trading it, check this out. VIX has been trending higher for a couple months now. We've been tracking this thing and we're getting back up towards the edges of the range. When we get to these levels people start thinking about positioning for volatility to pull back in. If you're looking out a couple days or a couple weeks, that's the trade you're watching for. If you're an intraday trader though and you just want to trade volatility while it's here, there are two tickers you should pay attention to. UVXY is a 1.5x leveraged long VIX ETF. It tracks short-term VIX futures and moves in the same direction as fear. When the market sells off and volatility spikes, this thing rips because of the leverage. SVXY is the other side. It's a -0.5x inverse VIX ETF so it goes up when volatility goes down. Doesn't move as fast as UVXY because the leverage is lower but when vol starts to fade this is how you play that. The way we like to trade these intraday is with volume-weighted average price and standard deviation bands. Here's how to set it up on TradingView: Pull up your ticker on a 3 minute chart Click Indicators at the top and search for VWAP Add it to your chart Click the Settings gear icon on the VWAP label (see screenshot) Under Bands Settings, check all three Bands Multiplier boxes Set them to 1, 2, and 3 Hit Ok That gives you VWAP as the center line with three standard deviation bands above and below it. VWAP tells you where the average institutional price is for the day. Above it, buyers are in control. Below it, sellers are running things. The deviation bands around it are where you're finding your entries. Statistically, about 68% of price action stays within the first band. About 95% stays within the second. And 99.7% within the third. So when price stretches out to that second or third deviation, it's in rare territory and it wants to snap back. You're watching for price to push out to those outer bands and then revert back toward VWAP. If UVXY pushes down to the second or third deviation below VWAP and starts to curl back, that's a potential reversion long back toward the mean. If it rips up to the second or third deviation above, you're watching for it to roll over and fade back down. VWAP is your target and the deviation line is your entry. Look at the chart today. UVXY stretched to the upper deviations in the morning, faded back to VWAP, broke below it, and started pushing toward the lower bands into midday. When this thing stretches to those outer bands it's setting up a potential trade the other way. One thing you need to understand about these products though. They are not for holding. UVXY especially is designed to lose value over time. These funds hold VIX futures contracts that have to be rolled forward regularly. Most of the time, next month's contract costs more than the current one, a phenomenon called contango. Every time the fund rolls from the cheaper contract into the more expensive one it loses a little value. That just slowly bleeds the price down day after day. The daily leverage reset compounds against you, too, over multiple days. UVXY has averaged something like negative 80% annually since inception. That tells you everything you need to know about holding it. Swing trade these for a day or two if you have conviction. That's about the limit. Beyond that, the decay starts eating your position, and you're fighting the math. 'Scott