Question 1

What is the Vortex Indicator?

Accepted Answer

The Vortex Indicator (VI), developed by Etienne Botes and Douglas Siepman, identifies the start of new trends and their direction. It uses two lines — VI+ (positive) and VI- (negative) — derived from the relationship between current and previous highs and lows, normalized by the Average True Range.

Question 2

How it works

Accepted Answer

Question 3

Key features

Accepted Answer

- **Two oscillating lines** — VI+ and VI- typically range from 0.5 to 1.5. - **Trend identification** — the dominant line indicates trend direction. - **ATR-normalized** — adapts to volatility across different instruments and timeframes.

Question 4

Bullish

Accepted Answer

- VI+ crosses above VI- — uptrend beginning. - VI+ above VI- — uptrend in progress.

Question 5

Bearish

Accepted Answer

- VI- crosses above VI+ — downtrend beginning. - VI- above VI+ — downtrend in progress.

Question 6

Strong trend

Accepted Answer

- Wide separation between VI+ and VI- — strong trend momentum.

Question 7

Parameters

Accepted Answer

| Parameter | Default | Description | |-----------|---------|-------------| | Period | 14 | Lookback window |

Question 8

Sub-components

Accepted Answer

| Component | Description | |-----------|-------------| | `VORTEX_VI_PLUS(14)` | Positive vortex line | | `VORTEX_VI_MINUS(14)` | Negative vortex line |

Question 9

Example conditions

Accepted Answer

| Condition | Meaning | |-----------|---------| | `VORTEX_VI_PLUS(14) > VORTEX_VI_MINUS(14)` | Uptrend in progress | | `VORTEX_VI_PLUS(14) cross_over VORTEX_VI_MINUS(14)` | Bullish crossover — new uptrend | | `VORTEX_VI_MINUS(14) cross_over VORTEX_VI_PLUS(14)` | Bearish crossover — new downtrend | | `VORTEX_VI_PLUS(14) > 1.1` | Strong bullish momentum |

Question 10

Tips

Accepted Answer

- Vortex is one of the best indicators for catching trend reversals early. - Combine with ADX or a moving average to filter weak signals. - Period 14 is standard; shorter periods (7-10) for scalping, longer (21-30) for position trading. - Watch for VI+ and VI- converging — this often precedes a breakout in either direction.