Lakshmi - Vajra Energy Signal (VES)

Vajra Energy Signal (VES) is an advanced volume analysis indicator that detects energy accumulated inside the market.

When assessing the strength of trading activity, conventional practice looks at the magnitude of volume; VES is designed with the understanding that the same volume can have different meanings depending on the price range.

VES analyzes the complex relationship between price movement and volume with a proprietary algorithm and can detect internal market activities that are invisible from surface‑level price action, visualizing the characteristic whereby the value rises before a breakout.

In other words, VES views the market as an “energy system.” In the energy accumulation phase, relatively high volume occurs relative to the price range, and in the energy release phase, the stored energy is emitted as high volatility in price, that is, a breakout—this is the core concept on which VES is established.

⚡️ Basic Demonstration

https://i.imgur.com/oLNA8tk.jpeg

As you can see in the image above, VES simply displays the highs and lows of energy stored in the market as a thin line in a separate panel.

It is easy for traders to understand its intuitive patterns: it rises when hidden buying accumulation or selling activity continue and sink when a price breakout occurs. It can be applied across symbols and markets (stocks, commodities, cryptocurrencies, spot, and futures). While reducing clutter in price scale labels, it also supports dynamic autoscaling.

⚡️ Practical Usage

VES is expected to be used for the following purposes.

- Entry signal

When the VES value continues to rise—i.e., during energy accumulation—it can be considered on standby for a breakout. After a breakout, a trader can confirm the trend direction and enter.

- Exit signal

If the VES value rises during a trend, consider the possibility of a reversal and consider taking profits.

- Risk management

If the VES value remains elevated for a long period, regard it as increased market uncertainty and an approaching breakout; adopt a cautious trading strategy to prepare for higher volatility and adjust position size.

For example, in the SOLUSDT daily chart below, VES clearly shows how it functions in short‑term trading.

https://i.imgur.com/JKiAMMt.jpeg

In September 2023, when the price was moving around 20 USDT, VES formed frequent small spikes. These early spikes suggest that market participants were still in a wait‑and‑see mode and that small‑scale accumulation was being conducted intermittently.

A decisive change came in early October 2023. While the price still stagnated in the 20–25 USDT range, VES suddenly formed a huge spike. The scale of this spike was far larger than those in September 2023, clearly suggesting that hidden substantial trading activities by large investors had begun.

In mid‑October 2023, the price began to rise. It climbed stepwise from 25 USDT to 40 USDT, then to 60 USDT and 75 USDT, and then surged to above 120 USDT within just a few weeks. This suggests that the energy built in the buy accumulation phase in early October 2023 was converted into price appreciation.

Therefore, after such a large VES signal is observed and the price breaks upward, entering a long position could have been profitable.

A large VES reaction is not only a quiet “buy signal” as in the example above; it can also be a “sell signal.” Such a case is explained below using an example on the BTC chart.

https://i.imgur.com/Vvo4xYN.jpeg

This BTCUSD 4‑hour chart is a valuable example showing how VES detects top formation on a short timeframe. In the first half of February 2024, the price moved in a relatively narrow 96,000–99,000 USD range. During this period, VES remained stable at low levels, and the market continued a calm uptrend.

The first sign appeared on February 16, 2024. While the price still held around 97,000 USD, VES formed a clearly identifiable small spike. This implied that some large investors had begun to take profits, or that new sellers had started to build short positions. However, at that point, the impact on price was limited, and many traders may have overlooked the signal.

The decisive turning point came on February 23, 2024. With the price moving around 98,000 USD, VES suddenly formed a huge spike. The scale of this spike was far larger than previous moves, clearly indicating that significant energy was accumulating.

Importantly, even at this moment the price still remained at the highs. On the surface, price barely moved and the bull trend appeared intact, but VES detected a major internal change underway.

On February 24, 2024, the price collapsed and began to fall. It dropped about 15% from 97,000 USD to 82,000 USD in a few days. The speed and magnitude of this decline corroborated the quiet “sell signal” indicated by the VES spikes.

The key lesson from this chart is that a VES spike does not necessarily mean buy accumulation. A large VES spike formed at high prices may instead indicate a distribution phase—that is, large investors exiting or building short positions. When the price is at elevated levels, a VES spike should be considered not only as a precursor to further upside but also as a warning of potential downside.

From a trading‑strategy perspective, the huge VES spike on February 23, 2024 was a clear signal to exit or to consider entering short positions. At that point, traders should have either closed long positions or to consider building a short position. The moment when price started to decline from its peak was exactly the entry timing for a short.

On the 4‑hour timeframe, changes in VES appear faster and more dramatically. While this allows more agile responses, the risk of false signals is also higher; therefore, confirmation on other timeframes and comprehensive judgment with price action are essential.

VES is a powerful tool for reading internal market activities, and this chart clearly shows that its interpretation requires flexibility that takes into account market conditions and price location.

⚡️ Parameter Settings

Strength 1: The lower the number, the more it emphasizes responses closer to the present timeframe; the higher the number, the more it emphasizes responses farther from the present timeframe. 5 is recommended.

Strength 2: The lower the number, the greater the volatility of the value; the higher the number, the smaller the volatility. 5 is recommended.

Scale: Adjusts the display scale. −30 is recommended.

⚡️ Conclusion

Vajra Energy Signal (VES) visualizes the cycle of energy accumulation in the market from the relative relationship between price range and volume, detecting hidden activities by market participants that conventional volume analysis cannot capture. VES serves as a powerful auxiliary tool for early detection of turning points, enabling deeper market understanding and more accurate timing decisions. As the examples show, there is a possibility of sensing major price movements in advance. When using VES, flexible interpretation according to market environment and price location is required, and it demonstrates its true value when combined with price action and other analysis methods such as support/resistance.

⚡️ Important Notes

- VES is a tool that infers internal market energy; it does not guarantee trades or suggest future results.
- We strongly recommend using it together with price action analysis and support/resistance.
- Confirmation across different timeframes improves reliability.
- Effectiveness may vary depending on market conditions and liquidity.
- Very illiquid instruments or newly listed assets may produce more noise.

⚡️ How to Get Access

This indicator is Public Invite‑Only. If you would like access, please apply by following the Author’s Instructions.