Vortex Indicator takes its name by the natural flow and vortexes of water that occur in rivers as it is the combination of two oscillators measuring upward and downward movement.
It’s formed by two oscillators:
- VM+ (upward vortex) measures the difference between the high of a candle and the previous candle’s low.
- VM- (downward vortex) measures the difference between the high of a candle and the next candle’s low.
Vortex Index takes into account also volatility, by employing TR (True Range) in its calculation.
How to Trade
The simplest signals the indicator generates are crossovers between VM+ and VM-. So when VM+ crosses above VM- the trader should buy, and if VM- crosses above VM+ the trader should sell. All positions are opened after the last candle closes and the crossover is confirmed.
- File: Vortex Indicator.mq4
- Size: 5 Kb
- File: Vortex Oscillator.mq4
- Size: 4 Kb