A Smoothed Vortex Indicator Using Price Filtering and TEMA

Summary

This indicator description modifies the Vortex indicator, which the source associates with an article published in the January 2010 issue of TASC. It adds a smoothing option by filtering prices before calculating the vortex values. The stated purpose is to reduce the lag that can arise when smoothing is applied. It also uses the Triple Exponential Moving Average, or TEMA, described as a responsive average, for the same lag-related reason.

The document provides a high-level account of the calculation approach, but it does not give the filtering formula, parameter choices, entry or exit rules, or guidance for interpreting the resulting values. It includes no chart examples, market comparisons, backtest results, or evidence that the smoothing method improves signals. Thus, it explains the design intent rather than establishing a complete strategy or demonstrating an advantage. Traders considering the indicator would need to inspect its implementation and assess how the filtering and TEMA choices affect responsiveness and noise across their own instruments and timeframes.

Key ideas

• The indicator applies price smoothing before calculating Vortex values.
• The stated design goal is to reduce lag associated with smoothing.
• TEMA is used as a responsive average in the smoothing approach.
• The description does not specify formulas, parameters, or trading rules.
• No empirical evidence is given for improved signal quality or trading performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.