VB Sigma Smart Momentum Indicator

VB Sigma Smart Momentum Indicator (VBSSMI)

The VBSSMI provides a consolidated decision-support framework that surfaces market participation, trend integrity, and liquidity conditions in a single visual environment. The tool integrates four analytical modules: MCDX Flow Mapping, Donchian Regime Layers, Banker Flow Modeling, and Chop Zone Trend Classification. Together, these components convert raw price movement into an actionable interpretation of who is in control, whether momentum is durable, and what phase the instrument is currently cycling through.

How to Use the Indicator (Practical Workflow)
1. Start with Institutional / Banker Flow (Pink/Red/Yellow/Green Candles)

This is the primary signal layer. It tells you when high-capacity participants are increasing, reducing, or reversing risk.

Yellow Candle — Entry Bias
Indicates a potential institutional initiation when their trend metric crosses above their accumulation threshold.
Operational signal: instrument enters “monitor for entry” state.

Green Candle — Accumulation State
Fund-trend > bullbearline.
Operational signal: trend integrity improving; pullbacks are generally buyable.

White Candle — Distribution / Cooling
Fund-trend weakening but not broken.
Operational signal: tighten stops; momentum deteriorating.

Red Candle — Exit / Trend Failure
Fund-trend < bullbearline.
Operational signal: momentum regime invalidated; avoid long risk.

Blue Candle — Weak Rebound
A temporary uptick within broader weakness.
Operational signal: do not mistake this for a durable reversal.

2. Validate alignment with Flow Chips (Retail / Trader / Institutional)

These three flow columns (MCDX layers) answer: who is actually participating?

Retailer Flow (Locked Chips – Green)
High values imply retail conviction, often late-cycle.
Good for confirming trend strength, not timing entries.

Trader Zone Flow (Float Chips – Yellow)
When this spikes, volatility and tactical positioning increase.
Signal: strong short-term engagement, supports breakout/trend continuation.

Institutional Flow (Profitable Chips – Red/Pink)
This is the “true north” of momentum.
Rising values = institutions controlling price discovery.
Signal: long setups have statistical tailwind.

The operational guidance is straightforward:

Institutional Flow > Trader Flow > Retail Flow
is the healthiest configuration for sustainable upside momentum.

3. Confirm Breakout / Breakdown Conditions with Donchian Regime Columns

The vertical Donchian stack illustrates trend regime in a time-compressed format.

Bright Blue/Cyan
Structure expanding upward (breakout cluster).

Dark Purple/Red
Structure breaking downward (breakdown cluster).

Mixed Columns
Transitional or indecisive conditions.

Interpret it as a “momentum backdrop”:

If Donchian columns and Banker Flow candles disagree, avoid entries.

4. Consult the Chop Zone Strip Before Committing Capital

The Chop Zone uses EMA angle to determine whether the market is trending or congested.

Greens/Blues → Trend phase (favorable environment for continuation trades).

Yellows/Oranges/Reds → High noise probability; expect false signals.

Operationally:

Never enter breakout setups during yellow/orange/red chop.

5. Final Decision Framework (Checklist)

A long setup typically requires:

Green or Yellow Banker Flow Candle

Institutional Flow rising

Donchian columns in bullish regime colors

Chop Zone in a trend color (not red/yellow/orange)

A short setup is the exact inverse.

Recommended Use Cases

Momentum trading

Swing position building

Institutional-flow confirmation

Trend-filtering before deploying breakout systems

Screening for strong/weak symbols in multi-asset rotation strategies