VPIN — Poison Gate
VPIN Poison Gate is an early warning tool. It detects abnormal market conditions, such as major news events that cause violent price spikes. It helps prevent you from entering trades at the wrong moment.
Tutorial video for this chapter
Chapter 05 tutorial video · 15 seconds long
What is VPIN, in plain language
Think of it as a door guard. Normally, the market moves in an orderly fashion. But during certain periods (such as NFP employment data releases), prices jump and swing wildly. VPIN detects this abnormality and warns you: "The market is toxic right now — be careful."
Check VPIN status
VPIN Poison Gate — yellow bar detects abnormal market conditions
VPIN row in the signals tab, normal status (NEUTRAL) — the POISON GATE label has not appeared yet because critical thresholds have not been met. If the POISON GATE label appears along with the warning bar, you should immediately refrain from entering trades.
What to do when VPIN warns
- Avoid opening new trades until conditions return to normal.
- If you already have open trades, watch for volatility. Always set a stop loss.
- Wait for the market to calm down before looking for new opportunities.
★ VPIN runs in the background at all times — like a safety guard watching over you.
