NOTE: Mode A in VAD 2.0 is the same as the original VAD indicator and setting and changes with each bar as it closes up or down. VAD 2.0 has new additional “Mode Settings” of VAD. Mode B,C,D,E do not always change with each bar and are designed to give you a longer time indication of overall direction of the market.
These are 5 different Algorithms written by Mr. Darrell Martin to help find the best combination of trend direction, price action, and volume order flow based on absorption.
The modes are the different algorithms he designed. We have found that Mode A, along with Mode E seem to work best in most markets, but feel free to test the various modes or put multiples on your chart to test your markets.
This is a simple system that anyone can learn in just a matter of minutes and is extremely effective! Check out the training video below:
NOTE: 5/4/17 the training video is temporarily missing. We are working on retrieving it and reposting. In the mean time, you can watch the below titles:
Darrell in the Elite room May 2, 2017
Conference room tips using VAD and Bar Timer - Lori
THT - Chop breakouts indicated by VAD 10 17 2016 Lori
ENTRY: Only take trades in the direction of the VAD Mode “E”
If VAD Mode “E” is long, we are only looking for long trades
If VAD Mode “E” is short, we are only looking for short trades
Looking for divergence on VAD Mode “A” (Original VAD) to confirm trade in that direction
Entry is 3 ticks above / below the close of the bar that confirms divergence
CHART EXAMPLES FROM TRADERS SHOWING SET UPS:
Initial Stop upon entry: 20 Ticks
Trailing Stops Options:
-
MVP- like used on IZSS system to catch longer trends
-
Trend Flip- for tighter stops and trailing to catch trends
-
Custom trails and ATM’s
-
Tighten stops at strong levels
-
Can scalp- Example: go for a 1/1 risk reward ratio. Risk 20 to scalp 20. Or if need a lower risk, can go 15/15. If want higher than 1 to 1 risk / reward ratio can go for more.
Trailing stops and risk / reward ratios are completely at the traders discretion. Demo and back test to see what works best for the markets you trade, trading personality, account size, and risk tolerance.
Post any questions here in the Forum below or ask in the Elite Trade Room. Be sure to share your charts and findings on this trade set up.
Happy Trading!