Vortex Difference Oscillator: Comparing Positive and Negative Directional Movement
Summary
The Vortex Difference oscillator displays the gap between the Vortex indicator's positive and negative components as a histogram. Its single input is the calculation period. The description explains that it computes the two components from absolute distances between current highs or lows and the prior bar's opposite extreme, then smooths those measures and average true range over the selected period before scaling them.
The indicator can calculate its own Vortex values, so a separate Vortex indicator instance is not required. The document supplies the calculation definitions and mentions illustrative figures, but offers no trading rules, signal thresholds, empirical results, or guidance for selecting a period. As a result, it explains how the oscillator is constructed without establishing whether or how it may be useful in a trading system.
Key ideas
- The oscillator plots the difference between positive and negative Vortex components.
- Its calculation uses prior-bar highs and lows, smoothing, and average true range.
- A user-selected period controls the calculation window.
- The description provides no tested signals or evidence of trading performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.