Indicator reference › Vortex
The Vortex Indicator consists of two lines (VI+ and VI-) that capture the idea of upward and downward movement using the range of current bars relative to the prior period's extremes. When VI+ crosses above VI-, it signals an uptrend; when VI- crosses above VI+, it signals a downtrend. It's inspired by the spiral patterns of natural vortices.
VI+ above VI- indicates bullish momentum is dominant. VI- above VI+ indicates bearish momentum. The crossover points are the primary signals. The magnitude of separation between the lines indicates trend strength. Divergence (price trend vs VI trend) can warn of reversals.
Most reliable in directional markets with sustained trends. In choppy markets the lines cross frequently producing false signals. Works on all timeframes but best on daily for swing trading.
Choppiness Index
Parabolic SAR
Detrended Price Oscillator
Random Walk Index
A reading of Vortex Indicator can be written as an exact rule and checked against historical data — as a full strategy with entries, exits and costs, or as a single condition and what followed it:
How to backtest a trading strategy without code
Event analysis: what follows a market event
Plot it yourself. Add this indicator to a chart, change every parameter and watch the line move, then backtest how the rule would have behaved on historical data — free on the S&P 500 ETF, no card.
Create a free account or start with the lessons →