Vortex Trend Signals with Threshold Filtering and Optional Smoothing
Summary
This indicator classifies market direction using the two Vortex lines. It marks a bullish state when the positive line rises above an upper threshold while the negative line falls below a lower threshold. The bearish state reverses those conditions; other readings are treated as trendless. The display uses distinct colors for bullish, bearish, and no-trend states.
Users can set the Vortex calculation period and the upper and lower filter thresholds. Optional smoothing applies simple moving averages to the Vortex lines using a configurable period. The document describes the signal rules and adjustable inputs, but provides no trading tests, performance evidence, or guidance on choosing parameters. Threshold signals may lag or give conflicting indications across market conditions, so the description alone does not establish profitability.
Key ideas
- A bullish signal requires the positive Vortex line to exceed the upper threshold and the negative line to fall below the lower threshold.
- A bearish signal applies the same threshold logic to the negative and positive lines in reverse.
- Readings that meet neither directional condition are classified as trendless.
- Optional simple moving average smoothing can be applied to both Vortex lines.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.