VeMAs application options and some observations.
Surely many of you know that market volume and structure are some of the few basic things to keep an eye on.
The VeMAs indicator uses advanced algorithms to evaluate volume changes and price movements. It is designed for traders looking for accuracy and efficiency.
The indicator analyses the behaviour of the asset price, its volumes and identifies ideal entry points.
The settings and benefits of VeMAs are described here: VeMAs mt5 VeMAs mt4
The VeMAs indicator is tuned to more accurately identify momentum patterns by filtering out noise and focusing on volume changes that match the strength of the trend.
It fits perfectly into any trading system. Therefore, VeMAs can be used alone or as part of a more complex system.
The VeMAs indicator can be used for trading in many different ways. This blog describes just a few of the many ways in which this indicator can be used.
You can also find other combinations of VeMAs indicator data that may be of interest to you.
For example, by examining a chart with the VeMAs indicator, you can see certain recurring patterns that are great to use to improve the quality of your trading.
The best combination of VeMAs:
Model to buy:
- When you see a strong green bar crossing the zero line, it means that momentum is moving towards buying.
- Check the VeMAs background it should be green in colour.
- VeMAs signal line should be above 0.
- Entry: as soon as volume is confirmed by 1-2 green histogram bars, enter at candle close (usually the second or third histogram bar).
Model for sell:
- When you see a strong red bar crossing the zero line, it means that momentum is moving towards selling.
- Check the VeMAs background it should be red in colour.
- VeMAs signal line should be below 0.
- Entry: as soon as volume is confirmed by 1-2 red histogram bars, enter at candle close (usually the second or third histogram bar).
You can use the 1st bar of the histogram to enter the trade, but better results are obtained if you enter the trade after closing the 2nd bar of the histogram of the same colour.
When VeMAs background is colourless – do not trade. Wait until it turns green (bullish) or red (bearish). With experience, you can take advantage of the first colour change, but this is subjective and depends on your style and experience.
The signal line will help you stay on the right side of the market, and you can use a multiple timeframe approach.
If a very large bar suddenly appears on the histogram, try not to open a trade immediately, as it is probably taking liquidity and there is a high probability that it will move to the opposite side.
VeMAs recordings are best when the volume grows tact by tact.
It is not necessary to follow the above models. They are just recommendations. You can combine your own model to enter a trade more suitable for you.
After a while, you begin to understand the tool better and what you can do with it. And you will see what opportunities open up for you.
Some of the many uses for VeMAs:
- Together with your trading system. VeMAs can be used to confirm signals from your trading system to further increase trading efficiency.
- If you already have an effective and proven trading system, VeMAs can be used to find a more ideal trade entry by going down to lower timeframes.
- VeMAs can be used equally well if you trade medium term trading, long term trading or if you prefer scalping.
- The VeMAs indicator can be perfectly used as the main indicator in trading.
The combined approach with timeframes has proven itself especially well.
With VeMAs you can also develop your own trading system.
Combined timeframe option:
- Using the full model. When the VeMAs indicator has a full sell or buy pattern on the timeframe you are interested in. Switch to a smaller timeframe and wait for the full pattern to appear there and then enter a trade, or a series of several trades.
- Use only crossing 0 on higher timeframes. The best way to open any position is to wait for VeMAs to cross zero on a higher timeframe. Volume starts to come into the market and you can switch to a lower timeframe to look for earlier trades.
It works great when there is a signal on multiple timeframes, which means you are following the trend. But don’t forget to keep an eye on H1, H4 and Daily to understand the long-term direction, as that’s where powerful trends come from.
The VeMAs indicator shows interesting results at the American session, when additional volume enters the market.
VeMAs is a powerful indicator for tracking and working with volumes.
Get the VeMAs for yourself — VeMAs mt5 VeMAs mt4 