Trending indicators struggle in ranging markets, often leading to false signals and losses. Why? In trending markets, indicators like moving averages perform well by following price direction. However, in a sideways market, they produce inaccurate bullish or bearish signals, resulting in potential losses. To avoid this, consider incorporating volume analysis into your strategy.
The VIDYA Indicator could be the game-changer you need to win in any market condition! Stick around to find out how it combines trend and volume data to boost your trading edge.”
“Let’s kick things off by addressing a common struggle: Why do trend indicators struggle in ranging markets? Traditional tools like moving averages perform great in trends but fall short when the market starts to range, giving you those dreaded false buy and sell signals. That’s where VIDYA stands out—it adapts to both trending and ranging markets by factoring in volume alongside trend direction.”
“Now, how exactly does the VIDYA Indicator work? Unlike most indicators, VIDYA adapts in real time, analyzing both the trend direction and the strength of buying and selling volume. Think of it as a two-in-one solution, revealing not just trend direction but the power behind each price move. The indicator uses a dynamic average to show whether we’re in a strong trend or possibly heading for a reversal.”
“So, how do we apply VIDYA in live trading? First, look at the *VIDYA trend cloud: if it’s green, the market is bullish; if red, bearish. Next, check out the *delta volume. This value highlights the strength of the trend. When it’s above 50%, you’re in a strong bullish or bearish market—perfect for those high-probability trades. And here’s a tip: only enter a trade if delta volume confirms the trend strength!”
“VIDYA isn’t just about trends—it’s also incredibly useful for spotting trend reversals and *identifying ranging markets. When delta volume dips below 10%, or hovers near zero, it’s a big red flag that you’re in a *ranging market. This quick check can save you from those choppy, sideways conditions where most indicators fail.”
“Alright, here’s how you can set up VIDYA in TradingView. Go to the indicator search tab, type in ‘Volumatic Variable Index,’ and select the one by BigBeluga. Once added, you’ll see the trend cloud and delta volume indicators right on your chart. For today’s demo, I’ll be using GBP/JPY on the 15-minute timeframe, but feel free to use it on any asset and timeframe that suits your strategy.”
“Let’s go through some real-world examples. In a strong bullish trend, we wait for the price to retest the latest pivot low with a wick and ensure delta volume is above 30% before entering. In a bearish trend, it’s the reverse. Place your stop-loss decently below the entry and aim for a 2:1 risk-to-reward ratio. Using VIDYA this way, we capture big moves while minimizing false entries.”
“With the VIDYA Indicator, you’re not just trading on trend signals—you’re trading with confidence, knowing the volume strength behind each move. Whether you’re a beginner or an experienced trader, VIDYA gives you an edge in today’s unpredictable markets.”
“If you found this breakdown helpful, make sure to hit that like button and subscribe for more trading insights. Drop a comment if you want me to cover more on using VIDYA with other strategies or in different markets!”
