The Vortex Trend MetaTrader 5 Forex indicator is a technical gauge, which is based around the original Vortex Indicator, released in 2010. However, the MetaTrader 5 version of the indicator has made some modifications as listed below.
The indicator will show a coloured diagram, to highlight the trend direction within a separate window.
The different trend colours displayed within the MetaTrader screen are either Green, Red or Gainsboro (otherwise known as RGB).
The Green colour represents a bullish trend, whereas, the red colour signals a bearish trend and finally the Gainsboro colour portrays a sideways market.
The “Use vortex smoothing” is an important variable. It can be set to ‘Yes’, for which it will then start to deliver less random signals. When compared to when it’s set to ‘No’, it begins to randomises that characteristics.
How to trade with Vortex Trend indicator?
The Buy Signal: If you see the indicator put up a Green colour, go long. The signal dots within its indicator window.
The Sell Signal: If you see the indicator display a Red colored signal dot within its indicator window; go short.
The Exit Buy Trade: If you witness a bullish trend continue, close all buy orders. The indicator puts up 10 consecutive Gainsboro coloured signal dots. Furthermore, when the Gainsboro colored signals are less than 10, a Red signal will be displayed.
The Exit Sell Trade: If the bearish trend is running, close all sell orders. The user would witness 10 consecutive Gainsboro Vortex Trend signal dots. Or, if the signals are fewer than 10, than the green signal will be on display.
Tips: The indicator allows you to change all these settings and will allow you to choose the mist effective settings.
A further point involves the Bollinger Bands, you’re able to add these to your trade setup, which helps you speed up the settings with the indicator.