Understanding the Vortex Indicator
If you’ve ever delved into technical analysis, you might have heard of the Vortex Indicator (VI). Featured in the January 2010 edition of Technical Analysis of Stocks & Commodities, this article offers a neat trading idea based on a fundamental reversal system. The key to success with the Vortex Indicator is to use a breakout filter for your trades.
How to Trade with the Vortex Indicator
Here’s the scoop: when the VI+ line crosses above the VI- line, it’s a signal to buy. But hold your horses! You should only enter the trade if the market breaks above the high of the bar that created the crossover. On the flip side, if the VI- crosses above VI+, that’s your cue to sell, but again, only if the market dips below the low of the bar that generated the crossover.
Testing the Expert Advisor
I've put the code through its paces, and I can confirm that it operates as intended. However, I want to be clear: I’m not presenting this Expert Advisor (EA) as a guaranteed money-maker. Instead, it serves as a solid starting point for exploring the Vortex Indicator as a trading tool. My initial tests suggest that, in its current form, this system isn’t particularly profitable.
Important Disclaimer
Disclaimer: This Expert Advisor is provided as-is, and there's no guarantee that it will yield profits in real trading scenarios. It's meant purely for educational purposes. Please do not use it to trade your real money unless you've thoroughly tested and tailored it to match your risk tolerance and trading style.
Get Started with the Vortex Indicator
Important Note: To get this Expert Advisor up and running, you need to have the Vortex Indicator installed in your experts\indicators directory. This EA uses the iCustom() function to pull the necessary values from the Vortex Indicator.
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