What is Price Velocity?
Price Velocity is a proprietary calculation, executed in real-time, that helps us understand when a financial market instrument is susceptible to sudden, sharp price moves. Price Velocity, as measured by our algorithms, tells us the sensitivity of price reaction to buying pressure, selling pressure, and news-flow. The ability to predict future Price Velocity and through it the “path of least resistance” is the cornerstone of our innovations.
How Do You Use Price Velocity?
We use our Price Velocity Indicator in two important ways. We monitor divergences between Price and Velocity at each fractal price level in order to predict market turning points and, most importantly, we use Price Velocity to monitor tape risk, both up and down. Understanding Price Velocity is especially important prior to earnings announcements, clinical trial results and during periods when markets are focused on global macro news-flow.
Informational Videos:
Velocity Per Time Frame (Fractal)
Velocity: Terminology / Increasing vs Decreasing
Velocity Divergences / Determining Trading Opportunity by Predicting Price Move
Last updated: 2021-07-10T03:00:00Z