Indicators
Vortex Oscillator
The Vortex Oscillator is a technical indicator that aims to capture both the direction and strength of a price trend. It is based on the concept of vortex movements, which are defined as positive and negative price movements within a given period.
The Vortex Oscillator calculates two lines: the Positive Vortex Line (VI+) and the Negative Vortex Line (VI-)
How to use it ?
The Vortex Oscillator oscillates between 0 and 100. It can be interpreted in the following ways:
Trend Direction: When the Vortex Oscillator is above 50, it suggests an uptrend or positive bias in the market. Conversely, when the oscillator is below 50, it suggests a downtrend or negative bias.
Signal Line Crossovers: Traders may look for crossovers of the Vortex Oscillator and a signal line (typically set at 50) as potential entry or exit signals. A bullish signal occurs when the Vortex Oscillator crosses above the signal line, indicating a potential shift to an uptrend. A bearish signal occurs when the oscillator crosses below the signal line, suggesting a potential shift to a downtrend.
Trend Strength: The Vortex Oscillator can also provide insights into the strength of a trend. Higher oscillator values indicate stronger price movement in the prevailing direction, while lower values suggest weaker price movement or a lack of clear trend