User Guide – An Example of Using 3 Insights
When the VSM model is in State 1, representing a low volatility market, pay attention to the occurrence of "min" points on the candlestick chart. A "min" point indicates a short-term support level within a 40-minute time frame. If, at the same time, the AI Directional Strength Predictor histogram becomes lighter and a circular marker appears, it can act as a "double confirmation." This suggests that the price is unlikely to break through the support level identified by the "min" point. Similarly, if a "max" point appears on the candlestick chart, it signifies a potential phase of resistance within a price range.
When Transition from State 1 to State 2: If a "max" or "min" point occurs in State 1, and subsequent market developments transition into State 2, it indicates a change in market structure. In this scenario, the predictive logic associated with "max" and "min" points will cease to apply.
When the VSM model is in State 2, observe the AI Directional Strength Predictor histogram for high peak values. This suggests that the market may experience a continuation of the current trend, indicating a strong price movement.
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