Description:
The Vortex Indicator is a technical analysis tool developed by Etienne Botes and Douglas Siepman, designed to detect the beginning of new trends or the continuation of existing trends in financial markets. Introduced in the January 2010 issue of Technical Analysis of Stocks & Commodities, the Vortex Indicator has since gained popularity among traders and investors for its ability to provide valuable insights into market trends.
Input Parameters:
- Length: number of periods used in the calculation.
Use Cases:
- Trend Identification: When VI+ crosses above VI-, it signals a potential bullish trend; when VI- crosses above VI+, it indicates a possible bearish trend. The greater the distance between the two lines, the stronger the trend.
- Combining with Other Indicators: The Vortex Indicator works well when combined with other technical analysis tools, such as moving averages, RSI, or MACD, to provide additional confirmation of trends and potential reversals. For example, a trader might look for a bullish crossover of the Vortex Indicator in conjunction with a moving average crossover or an oversold RSI reading to enter a long position.
This feature can be used in:
- Market Scanner
- Strategy Tester
- Multi-Factor Alerts
- Smart Checklist
Do you want to learn more? Check out our Learning Center Article.