11. VMI Direction


 

The VMI Volume Delta is one of Alpha's favorite indicators.

It measures how many contracts were bought at the offer and sold at the bid and plots this like a candlestick chart. 

The setup is when the VMI turns up, buy, and when down to be short or exit longs. Meaning, if the volume on average is above it's current bar's open or previous bar's high, the momentum is considered up until this changes. 

This is where you could here but the dips and sell the rallies. Meaning, if the high of the volume is for example 1000 and the low is 300 of the bar, and the market is at plus 550 in volume difference, you could buy into the dip and sell out if the volume difference drops below 300. Yes, you can trade the VMI like a real price chart. 


Past performance is not necessarily indicative of future results.





Next -> Momentum Models 

12. Triple Top / Bottom



Futures, Options on Futures and Forex trading involves a substantial degree of risk of loss and is not suitable for all individuals. An investor could lose the entire investment or, in some cases, more than the initial investment. Past performance is not necessarily indicative of future results.