VWAP Displacement Index (VDI)

Measures how far price is from VWAP, normalized by short-term volatility

🧠 FORMULA

VDI = (Price − VWAP) ÷ ATR(5m)

• Uses 5-minute ATR
• Gives you standardized distance from value (VWAP)

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📊 HOW TO INTERPRET VDI FOR NVDA

VDI	Interpretation	Implication
-0.50 to +0.50	At value / balanced around VWAP	❌ Chop / rotation
+0.50 to < +1.00	Mild bullish displacement	⚠️ Developing bullish bias
> -1.00 to -0.50	Mild bearish displacement	⚠️ Developing bearish bias
≥ +1.00	Bullish displacement	✅ Strong bullish directional condition
≤ -1.00	Bearish displacement	✅ Strong bearish directional condition

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Never Miss a VDI Signal

NVDA Direction can automatically send a text message whenever your selected VDI thresholds are reached.

Learn how to enable SMS Alerts

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🧠 HOW VDI HELPS YOU ‘LOOK UNDER THE HOOD’

• NVDA often rotates around VWAP
• Moves away → either:
  • trend continuation
  • OR mean reversion

VDI tells our members which phase NVDA is in right now

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🔥 GOOD VDI FOR NVDA (TREND)

✅ Strong trend behavior

• VDI establishes direction:
  0.5 → 1.0 → sustained bullish displacement
• Or on bearish moves:
  -0.5 → -1.0 → sustained bearish displacement
• Holds beyond ±0.5 for multiple candles
• Strongest conditions occur when VDI reaches ≥ +1.0 or ≤ -1.0
• Does NOT repeatedly snap back toward VWAP

👉 This is sustained directional pressure

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❌ WEAK VDI FOR NVDA (TRAP)

🚩 Mean-reversion trap

• VDI establishes a mild directional reading (> +0.5 or < -0.5)
• Then collapses back toward the -0.5 to +0.5 balance range
• VWAP gets touched within 1–2 candles

👉 This can be a momentum failure, not sustained trend continuation

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🛡️ NVDA TRADE FILTERS - USING VDI

✅ TRADE ALLOWED ONLY IF:

|VDI| > 0.5

AND

VDI sustains the directional reading

Preferred:

VDI ≥ +1.0 for bullish moves

OR

VDI ≤ -1.0 for bearish moves

👉 Persistence and confirmation matter more than a single VDI spike for NVDA.

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🔥 HIGH-CONFIDENCE ZONE:

VDI ≥ +1.0

OR

VDI ≤ -1.0

AND

VDI remains stable or strengthens

This is where:

• Directional moves can extend
• Pullbacks can remain shallow
• Continuation becomes more likely when RVF, MA, ORES and TPS agree

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⚠️ CAUTION ZONE:

VDI between +0.5 and +1.0

OR

VDI between -0.5 and -1.0

→ Direction is developing
→ Confirmation is still required

Otherwise:

→ Expect rotation or failed continuation

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❌ NO TRADE ZONE:

|VDI| ≤ 0.50

• Price is near VWAP
• Directional displacement is weak
• No clear directional edge
• Chop and rotation become more likely

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🔁 ENVIRONMENT DETECTION (TREND vs TRANSITION vs CHOP) WITH VDI + RVF COMBINATION (BIG EDGE FOR NVDA DIRECTION MEMBERS)

🔥 BEST SETUPS (A+)

|VDI| ≥ 1.00

AND

RVF ≥ 1.40

AND

ORES ≥ 1.30

AND

TPS > 0.65

→ Strong directional move
→ Strong participation
→ High institutional environment
→ Best conditions for trend continuation

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❌ FAKE MOVE

|VDI| > 0.50

BUT

RVF < 1.10

→ Looks like directional expansion
→ Participation is not strong enough

👉 Skip

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🧠 TREND DAY SIGNAL

|VDI| ≥ 1.00 sustained

AND

RVF ≥ 1.40

AND

ORES ≥ 1.30

AND

TPS > 0.65

→ Under these conditions, NVDA has the strongest environment for sustained directional movement.

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⚡ EXECUTION RULES (BUY / SELL SIGNALS)

LONG

• VDI ≥ +1.00 preferred
• VDI > +0.50 minimum directional confirmation
• Price above VWAP
• RVF ≥ 1.10
• Prefer RVF ≥ 1.40
• TPS > 0.50
• Prefer TPS > 0.65
• MA confirms directional acceleration
• Enter on pullback → continuation
• Trade only during the 10:00–11:30 AM EST trading window

SHORT

• VDI ≤ -1.00 preferred
• VDI < -0.50 minimum directional confirmation
• Price below VWAP
• RVF ≥ 1.10
• Prefer RVF ≥ 1.40
• TPS > 0.50
• Prefer TPS > 0.65
• MA confirms directional acceleration
• Enter on pullback → continuation
• Trade only during the 10:00–11:30 AM EST trading window

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🧠 RVF, VDI & MA GIVE YOU A MORE COMPLETE PICTURE

• RVF = participation
• VDI = distance from value
• MA = acceleration

Additional NVDA Direction confirmation:

• ORES = institutional environment
• TPS = combined trade probability

Don’t trade NVDA unless price is clearly away from VWAP, staying there, and the participation and probability metrics confirm the move.

⏱️ NVDA Direction Trading Window

No trades before 10:00 AM EST

BEST window: 10:00–11:30 AM EST

Trading window ends at 11:30 AM EST.