What it is
The Vortex Indicator (VI) is a technical analysis tool designed to identify the start of a new trend or the reversal of an existing one. Developed by Etienne Botes and Douglas Siepman, it captures the relationship between positive and negative trend movements.
How it works
The indicator calculates two oscillating lines, VI+ and VI-. These lines measure the distance between the current high/low and the previous period's low/high, effectively filtering out market noise to highlight momentum shifts.
Trading signals
- Bullish: VI+ crosses above VI-.
- Bearish: VI- crosses above VI+.
- Confirmation: Traders often wait for the lines to diverge to confirm strength.
Basic settings
The standard period length for the Vortex Indicator is 14. Users can adjust this parameter in TradingView to suit shorter or longer timeframes. This content is for educational purposes only, not financial advice.
