5. Momentum - VMI Value - Points Difference
Volume Momentum Indicator (VMI) Overview
Functionality of VMI: The Volume Momentum Indicator (VMI) is a specialized tool designed to visually represent the balance in trading volume within a specific chart bar. It distinguishes between the number of contracts bought and sold, providing insights into market momentum.
Interpreting VMI Signals:
Momentum Up: When the VMI indicates that more contracts are bought than sold on a specific bar, it suggests upward momentum.
Momentum Down: Conversely, if more contracts are sold than bought on that bar, the VMI signals downward momentum.
Significance in Market Analysis: The VMI plays a crucial role in the Market Pulse App, particularly for traders focused on volume trading. Its dynamic updates and insights across various time frames enable traders to better understand market trends and forecast future movements based on volume data.
Momentum - VMI Value - Points Difference | Settings
The Volume Momentum Indicator (VMI) value settings in the Online Trading Solutions Market Pulse App offer a range of customization options, enabling traders to tailor the VMI display according to their individual preferences and strategies. The VMI is a key tool for analyzing volume-driven market dynamics. Here's a breakdown of the customizable options available for the VMI
Value settings:
1. Show VMI:
This option allows you to toggle the display of the Volume Momentum Indicator (VMI) on or off, depending on your need to focus on volume momentum in your market analysis.
2. VMI Average (VMI Avg):
Set the desired value for averaging VMI volume data. This setting determines how the VMI calculates the average volume, affecting its sensitivity and responsiveness to market changes.
3. VMI Set Bars:
Determine the number of bars that the VMI will consider in its average calculation. This setting helps in defining the period over which the VMI should analyze volume data, which can be crucial for different trading styles.
4. Warning Threshold Setting:
Set a specific threshold value for the VMI. When the VMI is 5 points above or below this value, the app displays a warning color, typically yellow, to alert traders of significant volume changes.
5. Positive Value Color:
Customize the background color for situations where the VMI value is positive. This color can help visually indicate bullish market conditions or high buying volume.
6. Negative Value Color:
Select a background color for when the VMI value is negative. This color can signal bearish conditions or high selling volume.
By tailoring these settings, traders can align the VMI feature in Market Pulse with their individual trading approaches. Adjusting settings like the average value, set bars, and visual cues for positive and negative values enhances the app’s utility, making it an effective tool for real-time volume momentum analysis.