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Using the Vertical Horizontal Filter to Classify Trends and Ranges

Article MQL5 code base
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Summary

The document describes an Expert Advisor that trades from the Vertical Horizontal Filter (VHF), an indicator attributed to Adam White. It presents three ways to interpret VHF: its level can indicate trend stability, its direction can distinguish growing trend strength from a possible flat market, and its extreme values can be read contrarily as suggesting a coming flat or a new trend.

The proposed setup searches VHF values across a main sliding window and uses a working window to identify the trend state. Inputs include both window sizes, the indicator averaging period, fixed-lot or risk-based sizing, an optional reversed signal, logging, and an EA identifier. The page mentions a EURUSD hourly test, but supplies no performance figures, test methodology, or detailed entry and exit rules. The indicator interpretations can conflict, especially the trend-strength and contrarian readings, so the page does not establish a validated trading edge or explain how to resolve them.

Key ideas

  • VHF is presented as a way to distinguish trending conditions from flat markets.
  • A rising VHF is described as evidence of a trend, while a falling value may suggest a flat market.
  • The document also proposes a contrarian interpretation of high and low VHF values.
  • The EA uses main and working windows to identify VHF extremes and trend state.
  • Position sizing can use a fixed lot or a risk percentage, with an option to reverse signals.

Tags

Technical indicatorsTrend followingForexPosition sizing

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