The power of using low-lag, ultra smooth indicators is that you can safely experiment with feeding one indicator to another without signal degradation. Here is one such example...

The "VEL on VEL" indicator feeds the output of VEL on price to another VEL and plots a blended combination of this and a single VEL. Standard VEL analyzes trend directional strength, but VEL-on-VEL analyzes trend acceleration. This synchronizes VEL with rapid market reversals, typically found in a tight trading range.

The chart shows the S&P500 and the VEL-on-VEL oscillator. To this chart we added a simple strategy designed to enter long when the color changes to cyan and exits when it changes to brown.

• Different time frames on a chart may produce different results.

• Please do not ask us for indicator parameter settings. Every market is different.

• Past performance of any trading system is never a guarantee of future performance.

• All trading strategies have risk and commodities/futures trading leverages that risk.