> For the complete documentation index, see [llms.txt](https://docs.candelacharts.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.candelacharts.com/investing/risk-and-portfolio-management/vix-risk-z-score/confluences.md). # Confluences VIX Risk Z-score Confluences The VIX Risk Z-Score is a powerful macro timing tool, but its signals are drastically improved when paired with price-action confirmation and other structural indicators. * **Mean Reversion Index**: The ultimate contrarian setup occurs when the VIX Risk Z-Score spikes into "Panic" (Z > 2.0) at the exact same time the Mean Reversion Index plunges into its -2σ Capitulation Buy Zone. This dual-signal confirms both extreme price extension and extreme market fear. * **Divergences**: Watch for price making a lower low while the VIX Risk Z-Score makes a lower high. This suggests the market is selling off, but the "fear" behind the sell-off is already subsiding, often signaling exhaustion. * **Macro Credit Model**: If the VIX is spiking but the Macro Credit Model remains in a "Low Risk" regime, the sell-off is likely a normal equity correction, making it a safe dip to buy. If Credit Spreads blow out alongside the VIX, it signifies a deeper structural crisis. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.candelacharts.com/investing/risk-and-portfolio-management/vix-risk-z-score/confluences.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.