The Vortex Indicator is a volume-based MT4 indicator. It applies its VI+/VI- curves to compare bullish and bearish momentum strengths to predict future trend directions.
It applies a simple strategy for anticipating trend conditions. Here you only need to compare the value of positive and negative volumes, which are demonstrated by the volume curves.
Vortex Indicator for MT4 Overview
The Vortex Indicator applies a 14-period volume average for plotting the positive-negative volume curves.
Moreover, this volume indicator is adaptable to MTF charts and supports trading forex, stocks, and even crypto-assets.
Vortex Indicator for MT4 Explanation
While using the Vortex Indicator, we’ll speculate the upcoming trend direction based on the reciprocal positioning of positive/negative volume lines.
The positive volume (VI+) line moves above the negative volume (VI-) indicates the demand is higher than supply. As a result, the price increases, leaving the buyers to take advantage of bullish momentum.
Now let’s imagine an opposite crossover. The VI+ drops below VI- signals an intense sell pressure. Consequently, a rise in supply forces the price downwards. During such periods, buyers exit their positions, and sellers start dominating the market.
The Vortex Indicator shows the possible diverse moment of the price and does not assist in determining the trade-entry levels. Therefore, using some additional tools like Fibonacci, auto-pivots, and support/resistance indicators may enhance your timing of entries. Moreover, the Vortex works as a good trade signal filter as well. Simply merge with any volume-based trading strategy for improving your trading results.
You can Read: Breakout Trading: A Definitive Guide
Vortex Indicator for MT4: Buy Conditions
- The VI+ moves above VI-
- The price breaks above its recent high
- Exit long when the VI- turns above VI+
Vortex Indicator for MT4: Sell Conditions
- The VI- moves above VI+
- The price breaks its recent low
- Exit short when the VI- drops below VI+
