VortexIndicator

Description

The Vortex Indicator is a trend-following study based on a vortex pattern. In order to calculate its two components, VI+ and VI-, the indicator finds two differences: between current High and previous Low, and current Low and previous High. VI+ is calculated as the sum of differences of the first type divided by the sum of true ranges; VI-, the sum of differences of the second type divided by the sum of true ranges.

Values of VI+ higher than those of VI- signify that the market is in uptrend; values lower than VI- indicate the downtrend.

Input Parameters

Parameter Description
length The number of bars used to calculate the Vortex Indicator.

Plots

Plot Description
VI+ The VI+ component.
VI- The VI- component.

Example*

*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.

  Past performance is no guarantee of future performance.