THE VARIABLE CHANGING PRICE MOMENTUM INDICATOR
The Variable Changing Price Momentum Indicator (VC PMI) is an automated intelligent algorithmic trading system developed and tested over a decade. The primary driver of the VC PMI is the principle of reversion to the mean combined with a range of analytical tools including fundamental logic, wave counts, Fibonacci ratios, Gann principles, supply and demand levels, pivot points, moving averages, and momentum indicators. The science of Vortex Mathematics is used to combine these various elements into a comprehensive, accurate and highly predictive automated AI trading system.
- The VC PMI relies on technical analysis to analyze markets and predict future movements which seeks to determine what a security is worth at a given point in time. Such an approach uses historical prices and indicators to identify zones of supply and demand where buyers and sellers are likely to change the price of the financial product in an attempt to predict future price movements.
- The VC PMI uses technical analysis in the form of mean reversion trading, which seeks to capitalize on extreme changes in the pricing of a particular security, based on the assumption that it will revert to its previous state. This theory can be applied to both buying and selling, as it allows a trader to profit on unexpected upswings and save when a security or commodity is trading at an abnormal level.
One of the outstanding features of the VC PMI automated algorithm is the ability to forecast accurately the supply and demand levels for the next trading day, week or monthly session for securities and commodities. By identifying the average price or what is called the mean or equilibrium of price action based on yesterday’s supply and demand factors, the VC PMI extrapolates the extreme above and below the average price or mean equilibrium, specifically and precisely.
Once the algorithm identifies these levels, it creates a specific set of instructions to execute the signal, once certain criteria are met. When the signal is executed, the VC PMI will automatically produce a specific price target objective and a stop protective level for you to revert back to a neutral position and wait for the next signal.