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Vortex Indicator

Introduction to the Vortex Indicator

The Vortex Indicator is a forex technical analysis tool that is appreciated by traders as a provider of reliable and accurate trading signals. The Vortex indicator is best used to spot trend reversals and confirm ongoing trends using a pair of oscillating lines. It can be considered as a classic forex technical analysis indicator, as it was first introduced in 2010 by Etienne Botes and Douglas Siepman in the magazine Technical Analysis of Stocks and Commodities.

The Vortex Indicator fits all kinds of timeframes and currency pairs. It is displayed in a separate window placed just below the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.

How does it work? How to apply in trading?

Trading Rules Explanation

The Vortex Indicator consists of two oscillator lines. The uptrend line and a downtrend line, which are typically colored green and red respectively. The trading signals provided by the Vortex indicator are based on the crossover of these lines. Uptrend line taking higher values indicates a bullish dominating trend, and conversely, downtrend line taking higher values indicates a bearish dominating trend.

Buy Signal

Follow these steps for a long trade:

  • Vortex uptrend blue line crosses above Vortex downward red line
  • Price swings higher from recent low swing
  • Buy trade is triggered after the above conditions are met
  • Set stop loss a few pips below the last low point of the market
  • Take profit or exit trade whenever the Vortex Indicator provides opposite signal or use your own method of trade exit

Vortex Indicator Example of Buy Trade

Sell Signal

Follow these steps for a short trade:

  • Vortex downtrend red line crosses above Vortex upward blue line
  • Price swings lower from recent high swing
  • Sell trade is triggered after the above conditions are met
  • Set stop loss a few pips above the last high point of the market
  • Take profit or exit trade whenever the Vortex Indicator provides opposite signal or use your own method of trade exit

Vortex Indicator Example of Sell Trade

As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.

How to set up the Vortex indicator in MT4?

Installation Guide

Download the Vortex.rar archive at the bottom of this post, unpack it, then copy and paste the Vortex.ex4 or Vortex.mq4 indicator files into the MQL4 folder of the Metatrader 4 trading platform.

You can gain access to this folder by clicking the top menu options, which goes as follows:

File > Open Data Folder > MQL4 > Indicators (paste here).

Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.

Bottom Line

The Vortex indicator is well worth adding to your trading collection. A good forex indicator like this one will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it.

Vortex Indicator Free Download

To download the Vortex Indicator for Metatrader 4 (MT4) for free just click the button below:

Vortex Indicator Free Download

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