Vortex Indicator
Platform: MT4 Type: Oscillator Last update: September 21, 2024The Vortex Indicator for MT4 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.
How does it work? How to apply in trading?
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
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
