Vortex Indicator Calculations

Vortex Indicator Calculations :

The calculation of this indicator :

♦ Current true range (TR) of Vortex = Maximum absolute value of either (current high–current low), (current low–previous close), (current high–previous close).

Vortex Movement Up (VM+) of Vortex = (absolute value of the current high – previous low)

Vortex Movement Down (VM−) of Vortex = absolute value of current low – previous high.

♦ Parameter length (n) :

The parameter length is between 14 and 30 days which is common.

VM+ and VM- are sum of the last n period’s true range.

SUM TRn = Sum of the last n period’s true range.

SUM VMn+ = Sum of the last n period’s VM+.

SUM VMn− = Sum of the last n period’s VM-.

♦ Create the trendlines VI+ and VI- :

VIn+ = SUM VMn+/ SUM TRn.

VIn− = SUM VMn-/ SUM TRn.

Repeating this process daily forms the VI+ and VI- trend lines.