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.
||The number of bars used to calculate the Vortex Indicator.|
||The VI+ component.|
||The VI- component.|
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.