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.