The Vertical Horizontal Filter calculates the difference between the highest high and the lowest low during a specified time period. This difference is then divided by the sum of daily close changes over the same period.
Note that the study only considers absolute values of the differences between highs and lows, as well as those of the close changes.
Rising values of the Vertical Horizontal Filter may indicate a forming trend, while decreasing values may indicate that prices are falling out of the trend.
The period upon which the difference and the sum are to be found.
||The Vertical Horizontal Filter study.|
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.