Vortex Indicator
Platform: MT4 Type: Oscillator Last update: February 17, 2025The Vortex Indicator for MT4 is a unqiue trading tool as it’s inspired by Viktor Schauberger’s studies of natural vortex motion in water. The idea to take fluid dynamics and use them in trading enables indicator ability to “swirl” with market momentum. It captures trend shifts better that regular linear indicators.
When it comes to its anatomy, it has a dual-line design with crossover signals and it’s best used to spot trend reversals and confirm ongoing trends. Let’s have a closer look on it.
Example chart:
Trading signals of the vortex indicator for mt4
Essentially, the vortex indicator is built on two oscillating lines, namely VI+ (positive directional movement – blue color) and VI- (negative directional movement and red color). The formula behind them works to filter market “noise” while catching meaningful trend shifts. Trading signals occur through three primary mechanisms.
Crossovers
Crossover-based trading is core strategy and it’s pretty straightforward:
- Bullish Trend: When the VI+ line crosses above the VI- line, it suggests that bulls are gaining strength and a potential uptrend is emerging. Traders might consider this as a buy opportunity.
- Bearish Trend: Conversely, if the VI- line crosses above the VI+ line, it indicates that bears are in control and a downtrend is developing. This might be considered as a signal for a sell position.
Below you can see examples of buy and sell trades.
Divergences
Another approach are hidden reversals signals based on divergences in the vortex readings. They form when price makes new highs/lows unconfirmed by VI+ or VI- line strength. This is a warning for a trend exhaustion and potential upcoming reversal.
Pro tip: use slope and distance for confirmations
To validate your trade ideas, pay attention to these aspects. Steep VI+ angles combined with widening gaps between lines validate strong trends, whereas converging lines foreshadow reversals. Accounting these in analysis, increases the chance for success when trading with the vortex indicator.
Settings: customization options for vortex
The VI_Length (default period 14) is key feature available to adjust in the settings tab of vortex indicator. The higher value the smoother readings – and conversely – the lower value the more sensitive readings. You can tweak it, depending on asset, however it’s not recommended to go with extreme values.
Bottom line
The Vortex Trend Indicator for MetaTrader 4 isn’t just another crossover gauge. It tells how trends start, accelerate, and exhaust. By focusing on the relationship between directional momentum and volatility, it fills the gap between technical analysis and market behavior. For those who are willing to spend a bit more time to play around and learn deeper, it can become sort of a market compass.
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