# Vortex Indicator

Vortex Indicator is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®.

The Vortex Indicator sums upward and downward vortex movements (the distances between the current high or low and the prior low or high) and divides each by the sum of true range over the window, yielding the VI+ and VI- lines whose crossings track directional movement. It uses the classic default length of 14. This is a straight implementation of the standard calculation.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Apr 13, 2020.
- Access: free.
- Concepts: [Vortex](https://www.luxalgo.com/library/concept/vortex/) (primary)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=sa6f3uq4l5p2ma0gjoivycw5
- Page: https://www.luxalgo.com/library/indicator/vortex-indicator/

The **Vortex Indicator** tracks directional movement through two paired lines: VI+ sums the absolute distances from each bar's high to the prior bar's low over the lookback, VI- sums the distances from each low to the prior high, and both sums are divided by the total true range over the same window. Upward bar-to-bar reach feeds VI+, downward reach feeds VI-, and the normalization keeps the pair comparable across volatility regimes. Etienne Botes and Douglas Siepman published the design in 2010; this is a straight implementation of the standard calculation with the classic 14-bar length, plotted with a dotted baseline at 1.

## How to Trade the Vortex Indicator?

- **VI+ crossing above VI-**: upward reach has overtaken downward reach, the bullish cross arguing the uptrend has the upper hand.
- **VI+ crossing below VI-**: the bearish cross, handing the argument to the downtrend.
- **Wide separation between the lines**: the gap plays the strength role. The wider the spread, the more one-sided recent reach has been.
- **Both lines braided around the Baseline**: reach and range in balance on both sides. Indecision, and the conditions in which crosses degrade into noise.

The pair applies no smoothing, which is a deliberate temperament choice: crossovers arrive faster than on the Wilder-smoothed DMI family and whipsaw more in ranges. Practice compensates externally: a higher-timeframe bias, or a requirement that the crossing line hold above 1 before the signal is honored.

## Vortex Indicator Settings

- **Length** (default 14): the number of bars over which the vortex movements (VM+ and VM-) and the true range are summed. Lengthening toward 21 calms whipsaw at the cost of later crosses; shortening speeds the crosses and multiplies the false ones.

## Frequently Asked Questions

### How does the Vortex Indicator differ from the DMI?

Both build paired directional lines from bar-to-bar range logic, but DMI adds Wilder smoothing and a separate ADX strength line, buying stability at the cost of speed. The vortex pair skips both: it crosses earlier, whipsaws more, and lets the separation between VI+ and VI- stand in for a strength reading. Same niche, opposite tuning.

### What does the baseline at 1 mean?

A line near 1 says that direction's summed reach has been running close to the entire range the market traded over the window. One line well above 1 with the other depressed marks a directional market; both hovering near the baseline means neither side's reach is winning, the signature of chop.

### What alerts does the Vortex Indicator build include?

Two alert conditions, one per crossing: Bullish Cross when VI+ crosses above VI-, and Bearish Cross when VI+ crosses below VI-. They mirror the only signal events the two plotted lines generate.

## Related indicators

- [Structure & Trend Dashboard](https://www.luxalgo.com/library/indicator/structure-trend-dashboard/) (Trend Regime Label): markdown at https://www.luxalgo.com/library/indicator/structure-trend-dashboard.md
- [Trending Market Toolkit](https://www.luxalgo.com/library/indicator/trending-market-toolkit/) (Trend Regime Label): markdown at https://www.luxalgo.com/library/indicator/trending-market-toolkit.md
- [Change-Point Detection (CUSUM)](https://www.luxalgo.com/library/indicator/change-point-detection-cusum/) (Trend Regime Label): markdown at https://www.luxalgo.com/library/indicator/change-point-detection-cusum.md
- [Correlation Trend Indicator](https://www.luxalgo.com/library/indicator/correlation-trend-indicator/) (Trend): markdown at https://www.luxalgo.com/library/indicator/correlation-trend-indicator.md
- [HyperTrend](https://www.luxalgo.com/library/indicator/hypertrend/) (Trend Regime Label): markdown at https://www.luxalgo.com/library/indicator/hypertrend.md
- [HTF Candle Consistency](https://www.luxalgo.com/library/indicator/htf-candle-consistency/) (Higher-timeframe Trend Filter): markdown at https://www.luxalgo.com/library/indicator/htf-candle-consistency.md
- [Average Directional Index](https://www.luxalgo.com/library/indicator/average-directional-index/) (ADX / DMI System): markdown at https://www.luxalgo.com/library/indicator/average-directional-index.md
- [Anchored Powered KAMA](https://www.luxalgo.com/library/indicator/anchored-powered-kama/) (Kaufman Efficiency Ratio): markdown at https://www.luxalgo.com/library/indicator/anchored-powered-kama.md

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Source: https://www.luxalgo.com/library/indicator/vortex-indicator/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/
