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Extra indicators

Vortex Indicator

Two lines (VI+ and VI−) that compare upward and downward movement to find the start of trends.

2 min read · Try it on a live chart ↗

The idea in plain words

In an uptrend today's high is far from yesterday's low; in a downtrend today's low is far from yesterday's high. Vortex sums those distances and compares them.

How it is calculated

VM+ = |high − previous low|, VM− = |low − previous high|. Over N candles, VI+ = ΣVM+ ÷ ΣTR and VI− = ΣVM− ÷ ΣTR.

VI+ = Σ|H − L₋₁| ÷ ΣTR,  VI− = Σ|L − H₋₁| ÷ ΣTR  (N = 14)

How to use it

  • VI+ crossing above VI−: a possible start of an uptrend; the reverse for downtrends.

Drawing conclusions

  • The wider apart the lines, the stronger the trend.

Example

SOLUSD H4: VI+ rises from 0.92 to 1.15 and crosses VI− at 0.95; momentum has turned up.

Prices in examples are illustrative.

Watch out for

  • Frequent crosses in flat markets.

A little history

Introduced by Etienne Botes and Douglas Siepman in 2010, inspired by Viktor Schauberger's studies of vortices in water.

Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.