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Indicatorsintermediate
VIVI+VI−

Vortex Indicator

Trend indicator measuring upward and downward vortex movement; VI+ crossing above VI− signals a new uptrend, below signals a downtrend.

Also called VI · VI+ · VI−

Formula
+VM = |High_t − Low_{t-1}|;  −VM = |Low_t − High_{t-1}|;
VI+ = Σ(+VM, n) / ATR_n_sum;  VI− = Σ(−VM, n) / ATR_n_sum

The Vortex Indicator computes two lines: VI+ measures upward trend movement by summing the distance from today's high to yesterday's low, and VI− measures downward movement by summing the distance from today's low to yesterday's high, both over 14 periods and normalised by ATR.

Signals are generated when the two lines cross: VI+ above VI− = bullish, VI− above VI+ = bearish. The Vortex Indicator is broadly similar to DMI in concept but uses a different computation. It reacts relatively quickly to trend changes, making it useful for short-term swing traders as well as longer-term trend followers.

Related terms