#01b - VMI b

Discription -

We won’t trade any chart without the VMI – Volume Momentum Indicator. We take the difference in volume and plot it as a chart format. Then, we applied the cycle count and break out cycle low and high lines. It will show you confirmed volume moves and preview of market change in direction before the change. It really is my favorite new indicator.

The up color of the VMI b is purple so you can see the difference of VMIa, which is gold up and VMIb which is Purple up.

Chart -

How to use the VMI to trade?

We look at it in a few ways. The main turn is because it plots like a chart, we look for the indicator bar to go above or below the last bar’s high or low for entry or exit.

We want to trade in the direction of the color. With VMI a, it is set to 3 average, and the up color is purple and all the VMI’s are red for down to tell the difference between them.

More information -

Note – the VMI b up color is Purple and the VMI a is Cyan up colors.

Because we set this to a 7 average, it will turn slower, but it will hold trends longer with less false turns.

Inputs -

About the inputs -

The default is 1 lots or move. You can change lot size to any number and see different results. Meaning, if you put in 50, then it will only register 50 lots or more and discount all lot sizes below this value.

The average is the average of the Open, High, Low and Last of these continued values.

We then have the option to look back x bars. Our default it 10, but you can play around with this inputs.

The longer you choose the more data it will bring in. You can turn on and off any of the cycle counts and breakout lines.

We have 2 VMI’s so you can add 2 different looks to the market and then we change the up color to Purple to be able to see the different VMI’s easiler.

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When we say this indicator is a game changer for trend and reversals, it is an understatement. You will find sometimes the market goes up and the VMI goes down and the ultimate move will be in the direction of the VMI.  Excellent way to fade a move when using math of the VMI. We call this “Going Fishing” for better fill prices. If the market’s math does change while going fishing, then you can exit with a smaller loss.

#01b - VMI


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