VMDivergences – Overview
Is reading momentum and divergence a frustrating riddle in your trading?
Trying to figure how to read momentum accurately in your day trading is not an easy task. How do you identify immediate versus long-term momentum? How do you manage trades when momentum goes against you? Is momentum strong enough in your favor to let winners run to produce larger profits? Is the market faking you out when momentum shifts? How in the heck do you know?
The mad scramble for tools
The frustration gets even worse when you try using existing tools to make sense out of momentum.
- When you use multiple indicators for long-term and for immediate momentum the results are even more confusing and less clear.
- When you use momentum indicators on the wrong charts you get misinformation that misleads you down the wrong decision-making path.
- When you change indicator settings on existing indicators, you end up fine tuning the wrong tools.
So what happens next? You guessed it: You guess.
When existing tools can’t help you solve the mystery of momentum, you end up doing what you know you shouldn’t. But you don’t really have a better solution. Though deep down you know it’s not the right thing to do, you end up…
- Guessing when momentum is with you or against you when entering trades.
- Guessing what tool to use for fast and slow momentum.
- Guessing when you have momentum confluence or non-confluence.
- Guessing when you have favorable or unfavorable trading conditions.
- Guessing when to enter a trade aggressively or conservatively to avoid stop outs.
- Guessing how to manage a trade for the largest profits.
- Guessing if you are reading divergence correctly.
- Guessing if your trading at the end of a move without probability.
Which leads to… second guessing
With all that guessing, you never really have confidence that you are making the right decisions in your trading. You never know if your tools or strategy are truly working. Your trading around entries and exits along with trade management becomes even more daunting. You start to doubt your abilities to succeed.
The tool that (finally) sheds light on the momentum/divergence black hole.
What you really need is a tool that simplifies everything you need to know about momentum into one hybrid tool. A tool that lets you identify directional bias and time entries and exits with confirmed accuracy. A tool that identifies market climate for both fast and slow momentum. A tool that clearly signals when to be aggressive and when to be conservative. A tool that automatically tells you if you have expected follow through in the markets or if you should stay out of harm’s way. A tool that automatically detects divergence when price and momentum are not working together.
Introducing the VMDivergences…
Finally, a tool that penetrates the mysteries of momentum and makes them clear as day. How?
- The VMDivergences acts as a hybrid momentum indicator solving multiple requirements in one tool.
- It displays immediate momentum (fast) and long-term momentum (slow) all in one clear location.
- It measures momentum over multiple time-frames, using MACD BBs & MTF Velocity Cycles.
- It eliminates confusion while freeing up chart real estate by removing the need for more indicators.
- It displays indicator confluence so traders can easily identify high probability trading conditions.
- It automatically detects single and double divergence for trade setups and trade filters.
- It displays price excursion so you know if you’re trading at the extremes.
- It makes momentum trading decisions clear and easy.
And with the NeuroStreet Online training that goes with it…
- You’ll no longer trade against higher frame momentum direction.
- You’ll no longer use too many indicators to identify multiple measures of momentum.
- You’ll no longer enter trades when momentum is against you and get stopped out.
- You’ll no longer exit trades too soon when momentum is with you and lose out on additional profit potential.
- You’ll no longer fail to know when to be aggressive or conservative with timing entries in low-risk setups.
- You’ll no longer be confused trying to identify indicator confluence and safe trading environments.
- You’ll no longer not know when the market is faking you out in choppy market conditions.
- You’ll no longer continue to second guess your decisions around trade direction, entries, exits, and management.
- You’ll no longer struggle to identify divergence.
- You’ll no longer take trades at the wrong locations or extremes.
- You’ll no longer fail at analyzing reading multiple indicators at once.
- You’ll no longer be confused, mystified, or stumped by momentum in your day trading.
Commonly Asked Questions:
Q: What trading platform is this software compatible with?
A: Our software is currently available for use with NinjaTrader 7 and 8.
Why choose VMDivergences?
As a trader who owns many trading software from different vendors, I enjoy programs from NeuroStreet. Here is the reason I like VMDivergences:
Remember the high school Physics: Velocity is the rate of speed increases. If you are trying to determine how fast the market price is moving, looking at the chart’s price changes is not enough. VMDivergences works likes a dynamic computer constantly figuring out the state of the market movements. I think about it like an X Ray machine. By our human eyes we cannot see inside the body but the X Ray machine can. VMDivergences tool gives us detailed information which our intuition often gets it wrong.
In practice I see VMDivergences indicator as a friend who is not afraid to speak the truth that you do not like to hear. I feel we need the kind of friends to tell us what NOT TO DO when we become too emotionally involved on a potential good trade that can turn bad in the end
I have purchased the VMDivergence indicator from NeuroStreet and am very pleased with the product. At first it seemed like there were a lot of parameters which felt overwhelming, but I took the time to watch the training video and read the manual which are great and helped enormously. Then I also spent time turning each parameter on and off or adjusting the setting and visually seeing what it did to the display. In just a day or two I felt very comfortable and at home.
I especially like the Sentiment Settings for the Histogram and Market Structure. In one quick glance, I can tell if the most recent price action is trending up , down, or oscillating and if the sentiment is bullish or bearish. I also like the enhancements that were added to automatically show divergence and hidden divergence. That automatic visual display is so much easier for me than trying to remember to check for that on my own. As with all of Sean’s software, he has taken something fairly complex and simplified it to the max.
I can now make trading decisions with a quick and easy glance at a couple of things instead of having to remember to check 6, 8, or more different things. It has definitely eased my problem with analysis paralysis.
VMDivergence is a great tool I use when trading, either to quickly see the market sentiment, (trending or oscillating), or to use as extra insurance when you enter or exit trades. You can use it by itself mostly in oscillating markets, but I like to use it in combination with other software/signals.
It looks fairly simple, but there is a lot of in-depth features, like momentum, overbought/oversold levels, MACD etc. If you go into the nuances you can see divergence between fast and slow momentum, spot weak trends and false breakouts and the divergence lines show up directly on your chart.
You can quickly get an overlook when looking at a panel showing red or green, bearish and bullish, and you can also see when you are allowed to enter a trade. This is one of the first products I bought from Sean and the Neurostreet team and I always use it when trading.
I have been a member of NeuroStreet since 2015. Sean and his team have consistently improved and added to the core programs. One great addition has been VMDivergence. This indicator sets a new standard to identifying divergence, both standard and hidden divergence. This is divergence done the correct way with proper anchor points. The indicator is easy to customize and see just what you need and not clutter up the chart.
Michael uses this indicator in his trade room to identify potential reversals at key price levels or in combination with the other indicators. The reinforcement of the educational videos, strategy rooms and live trade room analysis makes the indicator easy to use and understand. It is just as important to learn when Not to use divergence as it is to learn when it is appropriate. This is well covered in the material and webinars. I have become much more patient in waiting for my setups and trading the edges of price action rather than the chop that often occurs in the middle.
The company does not just sell indicators but seeks to create traders and help them to succeed. I can highly recommend this indicator as an addition to your NeuroStreet software or other system you are using.
Sound like the solution to the trading riddle you’ve been looking for?
Then your next best step is to check out our Master Trader Programs to see if our online training and software might be a good fit for your trading style. If you’re serious about having the tools and the knowledge that gives you an advantage over all your competition — We should talk!