What it does
Vortex Trend draws two lines, VI+ and VI−, that compare upward and downward movement over a set number of bars. When VI+ is on top, upward movement dominates; when VI− is on top, downward movement dominates. An arrow marks each closed bar where the lines cross.
It is a compact way to spot the start of a new trend and to judge which side currently has control.
How it works
For each bar:
- Positive vortex movement VM+ = |current high − previous low|.
- Negative vortex movement VM− = |current low − previous high|.
- True range TR = larger of current high and previous close, minus the smaller of current low and previous close.
Over the last 14 bars:
- VI+ = sum of VM+ ÷ sum of TR.
- VI− = sum of VM− ÷ sum of TR.
A bullish cross is a closed bar where VI+ − VI− becomes positive after being zero or negative on the previous bar. A bearish cross is the reverse. If you set a minimum spread, the difference on the cross bar must exceed it, which removes marginal crosses. A reference level is drawn at 1.0.
How to use it
- Read the line on top as the dominant direction. Wide separation suggests a strong move; lines that converge suggest the move is fading.
- Crosses are trend-start hints. They tend to work better after a period of consolidation than in the middle of a choppy range.
- A small minimum spread, for example 0.02 to 0.05 depending on the instrument, can reduce whipsaws at the cost of later signals.
- Combine crosses with a price-chart trend tool, such as a moving average or a trailing stop, to confirm direction before acting.
- It works on any symbol and timeframe; H1 to D1 usually give cleaner readings.
Settings
| Input | Default | What it changes |
|---|---|---|
| Vortex length | 14 | Longer values smooth the lines and reduce crosses |
| Minimum VI+/VI- spread | 0.0 | Filters marginal crosses when above zero |
| Pop-up alert / Push notification | false / false | One alert per closed bar on a new cross |
Limitations
- VI+ and VI− cross frequently in sideways markets, and each cross is a potential false signal.
- Single large bars can dominate the sums for the whole window and then drop out abruptly, causing sudden moves in the lines.
- The indicator says nothing about where to place a stop or target.
- Values on the live bar change with each tick; arrows and alerts wait for the bar to close.
- Educational tool only; trading involves substantial risk of loss. Try it on a demo account first.