Vortex Indicator: VI+ and VI- lines from upward and downward vortex movement over 14 bars, compared with true range.
Overview
The Vortex Indicator shows two lines in its own pane: VI+ in green and VI- in red, around a baseline of 1.
When VI+ is above VI-, upward movement leads; when VI- is above, downward movement leads.
How it works
VM+ = |high - previous low|. VM- = |low - previous high|. VI+ = sum of VM+ over 14 bars / sum of true range over 14 bars. VI- = sum of VM- over 14 bars / sum of true range.
Only the length can be changed. Values above 1 mean the vortex movement was larger than the true range over the window.
How to use it
- Some traders watch VI+ crossing above VI- as the start of an uptrend.
- Use a widening gap as a sign of a strong trend.
- Watch the lines tangled near 1 as a range.
- Pair it with ADX for strength.
These are ways some traders read it, for learning. They are not trade signals.
Settings
| Setting | Default |
|---|---|
| Settings | |
| LengthNumber of bars used to sum the vortex movements (VM+ and VM−) and the true range. | 14 |
| Style | |
| VI+Color of the positive vortex line (VI+). | #089981 |
| VI−Color of the negative vortex line (VI−). | #f23645 |
| BaselineColor of the dotted baseline drawn at 1. | #787b86 |
Alerts
You can alert on its line crossing a value or the candle close (from the chart's + menu); checked while ZoroCharts is open.
Notes and limits
- Works on any symbol and timeframe; it only needs candle data.
Education only. Not financial advice. Indicators mark what happened on the chart; they do not predict what price will do. Trading futures, forex, crypto and other markets carries a high level of risk and may not be suitable for everyone.