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Vortex Indicator
A two-line indicator, derived from price movement relative to the prior period's true range, used to identify the start of a new trend.
The Vortex Indicator, developed by Etienne Botes and Douglas Siepman, calculates two lines — VI+ and VI- — from how far price moves relative to the prior period's true range, intended to capture the underlying "vortex-like" price action that precedes a new trend.
A crossover between VI+ and VI- is commonly watched as a potential signal that a new trend is beginning, similar in spirit to other directional-movement-based indicators like ADX's +DI/-DI pair, though calculated differently. See Kaavon's dedicated Vortex Indicator article for the full calculation.
Examples
- VI+ crossing above VI- is commonly read as an early signal of a potential new uptrend beginning.
- The Vortex Indicator's two lines serve a conceptually similar directional-comparison role to ADX's +DI and -DI, despite a different underlying calculation.