The Vortex indicator is a technical indicator part of the family of the trend indicators. It is one of the several trend indicators we consider in calculating the score for our Trend and Momentum daily report. Vortex can be used to stress if the current trend is an uptrend or a downtrend. Additionally, Vortex can be useful for the identification of a possible reversal of the current trend.
How to interpret Vortex
The Vortex indicator is based on two lines identifying the upward trend (+VI) and the downward trend (-VI) respectively. If the +VI is above the -VI, Vortex is indicating a price uptrend going on. If +VI is below -VI, a price downtrend is going on for the asset according to the Vortex Indicator.
The distance between the two lines represents a measure of the strenght of the uptrend or downtrend. Additionally, the Vortex Indicator can signal a reversal of the current trend if the two lines cross. If the +VI crosses the -VI from below, a downtrend can be muting into an uptrend. If the opposite happens, the Vortex is signaling the possibility of an uptrend muting into a downtrend.
Like for all the technical indicators, we always suggest to use Vortex in conjunction with other indicators. Also, we suggest to base all investment decisions not only on technical analysis.
Form more info on Vortex indicator and its caluclation, we link to the main source for this post.
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This post is prepared for information purposes only and by no means constitutes a solicitation to investment or disinvestment. All the presented valuations, indicators, and analyses are subject to errors. The report is for personal use only and should not be republished or redistributed