The Vortex Indicator consists of two oscillating lines — VI+ (positive trend movement) and VI- (negative trend movement) — that capture the directional movement of price through the relationship between the current high and prior low, and the current low and prior high. Crossovers between these lines signal trend changes and provide entry and exit timing for trend-following strategies across any market.
VI+ measures upward trend movement by comparing the current high to the prior low. VI- measures downward trend movement by comparing the current low to the prior high. Both lines are normalised by the true range sum over the lookback period. A VI+ crossing above VI- signals a bullish trend change. A VI- crossing above VI+ signals a bearish trend change. The indicator was inspired by the positive and negative vortex movements found in water flow dynamics.
Enter long when VI+ crosses above VI- from below, indicating a shift to bullish momentum. Enter short when VI- crosses above VI+ from below, indicating a shift to bearish momentum. Confirm crossovers with a close above or below a key moving average for additional conviction. Use the spread between VI+ and VI- as a measure of trend strength — wider spread indicates stronger trend.
Exit long positions when VI- crosses back above VI+, signalling the bullish trend is ending. Exit short positions when VI+ crosses back above VI-, signalling the bearish trend is ending. Tighten stops when the spread between the two lines begins to narrow. Exit if the crossover occurs without follow-through within a few periods.
Daily, Weekly
The Vortex Indicator is most effective in markets that exhibit clear trending behaviour and produces many false signals in choppy, range-bound conditions. Apply a trend filter from a higher timeframe to reduce whipsaws — only take bullish crossovers when the weekly trend is up, and bearish crossovers when the weekly trend is down. The default twenty-one-period lookback can be adjusted to suit different trading styles.
The Ichimoku Kinko Hyo (Ichimoku Cloud) is a comprehensive indicator system that defines support and resistance, identifies trend direction, gauges momentum, and generates trading signals — all in a single glance. Developed by Goichi Hosoda, the system consists of five lines and a shaded cloud (Kumo) that projects into the future, providing a uniquely forward-looking view of market equilibrium.
Williams %R is a momentum oscillator developed by Larry Williams that measures the current closing price relative to the highest high over a specified lookback period. It ranges from 0 to -100, with readings above -20 indicating overbought conditions and readings below -80 indicating oversold conditions. Williams %R is closely related to the Stochastic oscillator but inverted, making it particularly responsive to price reversals.
The Ultimate Oscillator, developed by Larry Williams, combines buying pressure across three different timeframes — typically seven, fourteen, and twenty-eight periods — into a single indicator weighted to reduce false signals. By incorporating multiple timeframes, it avoids the whipsaws common in single-period oscillators while still providing timely signals. Williams designed specific entry criteria involving divergence and threshold breaks to trade this indicator.
The Stochastic RSI applies the stochastic oscillator formula to RSI values rather than raw price data, creating a more sensitive momentum indicator that oscillates between zero and one. By measuring where the current RSI sits relative to its own range over a lookback period, the Stochastic RSI generates faster overbought and oversold signals than either the stochastic or RSI alone, making it particularly useful for timing entries within established trends.