Some traders ask what the difference is between ValueCharts and MQ VSI Pro, since both indicate Overvalued and Undervalued conditions.
MQ Value Charts and MQ VSI Pro both show conditions of being overvalued and undervalued, but they're basing it on two different things. Value Charts' analysis is based on assuring that value is determined based on past price performance. The calculation that ValueCharts does is patented, vetted by PhDs at Wharton, UCLA, and the University of Michigan. ValueBars shows the same value results as ValueCharts, but it overlays on top of price rather than taking up a subgraph.
VSI's over/under condition reporting is more aligned with relative strength calculations. VSI also brings volume into the equation, showing dots when volume is "drying up" when we're in extreme conditions. The dots often precede a reversal. VSI also colors the primary plot as bullish or bearish based on linear regression calculations, providing extra bias information.
The two indicators do not always agree. ValueCharts is usually more responsive, while VSI's analysis is somewhat longer-term. Since they approach over/under value using two different methodologies, they can be used together for even greater confirmation. That is, we can use confluence between the two for an even greater likelihood of success.
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