Vortex Indicator
The Vortex Indicator helps identify the start of a new trend or the continuation of an existing one.
Usage
Use to detect the start of new trends. A Vortex Indicator crossover (VI+ crossing above VI-) signals the beginning of an uptrend; the reverse signals a downtrend.
Background
The Vortex Indicator, developed by Etienne Botes and Douglas Siepman (2010), is inspired by the vortex flow of water discovered by Viktor Schauberger. VI+ measures upward movement relative to the prior bar low; VI- measures downward movement relative to the prior bar high. Normalized by ATR, they produce two oscillating lines whose crossovers signal trend changes. — Technical Analysis of Stocks and Commodities, 2010
Parameters
period(default: 14): Period
Formula
\[
VI+ = \frac{\sum VM+}{\sum TR} \\ VI- = \frac{\sum VM-}{\sum TR}
\]