RSIofPSAR is a VertexFX indicator that identifies trend reversals, it is based on two underlying indicators namely the Parabolic Stop-And-Reverse (PSAR) and the Relative Strength Index (RSI). The PSAR indicator is very useful in trend-following techniques when the trend is clear. However, it leads to whipsaws in sideways markets leading to losses. The RSI indicator is useful in identifying trend reversals and sideways markets. RSIofPSAR is created by combining these characteristics from the two indicators providing use with a composite indicator the identifies trend reversals. In the first step, we calculate the Parabolic Stop-And-Reverse (PSAR) of the price series. In the next step, we calculate the Relative Strength Index (RSI) of the PSAR calculated in the previous step. Instead of calculating the RSI using the standard technique, we use a smoothing co-efficient to eliminate the lag. The RSIofPSAR is a bounded oscillator ranging between 0 and 100. It turns BLUE when it is rising and turns RED when it is falling. BUY / EXIT SHORT - Enter LONG (or exit SHORT) when the RSIofPSAR turns BLUE from RED below the 50 level. Place the stop-loss below the nearest Swing Low. It is recommended to employ a trailing stop when the trade turns profitable. SHORT / EXIT LONG - Enter SHORT (or exit LONG) when the RSIofPSAR turns RED from BLUE above the 50 level. Place the stop-loss above the nearest Swing High. It is recommended to employ a trailing stop when the trade turns profitable.
iDoubleChannel VertexFX Indicator iDoubleChannel is a powerful VertexFX indicator that closely follows the price trends. The indicator comprises three components, namely the Upper (BLUE) trend, the Lower (RED) trend, and the Center (YELLOW) trend. When the Lower (RED) component is above the Upper (BLUE) component it signals a bullish trend. Likewise, when the Upper (BLUE) component is above the Lower (RED) component it signals a bearish trend. Traders should avoid trading against the trend. The Center (YELLOW) trend provides a guideline to the price movement. When the Center trend is between the Upper and Lower trends it implies a continuation of the trend. When the Center trend deviates outside the Upper and Lower trend it signals the end of a trend and the probability of a trend reversal is very high. The Center trend is the Simple Moving Average (SMA) of the Close over the recent CHANNEL_PERIOD candles. The Upper trend is calculated from the cumulative sum of the High and difference between the High and Close over the CHANNEL_PERIOD. Likewise, the Lower trend is calculated from the cumulative sum of the Low and the difference between the Low and Close over the CHANNEL_PERIOD. One of the main advantages of the iDoubleChannel indicator over other indicators is that it reduces the lag. BUY / EXIT SHORT - Enter LONG (or exit SHORT) when the BUY arrow is displayed and the RED (Upper) component of the iDoubleChannel indicator is above the BLUE (Lower) component of the indicator. Place the stop-loss below the nearest Swing Low. It is recommended to employ a trailing stop when the trade turns profitable. SHORT / EXIT LONG - Enter SHORT (or exit LONG) when the SELL arrow is displayed and the BLUE (Upper) component of the iDoubleChannel indicator is above the RED (Lower) component of the indicator. Please the stop-loss above the nearest Swing High. It is recommended to employ a trailing stop when the trade turns profitable.
Double Smoothed AMA Double Smoothed Adaptive Moving Average (DSAMA) is a VertexFX indicator based on the Simple Moving Average (SMA) indicator. One of the biggest drawbacks of the SMA is the presence of lag which delays trade entries and exits. The DSAMA indicator offers three advantages of the SMA indicator. First and foremost, unlike the fixed period of the SMA, the period of the DSAMA is adaptive and is calculated based on a fast and slow period range. As a result, it shows a better response than normal SMA. Secondly, by using a smoothing algorithm, the lag is reduced thereby allowing traders to enter and exit trades faster before the price has moved too far away. Building the Indicator: In the first step, we calculate the greatest and smallest value of the price over the recent PERIOD candles. Based on the greatest, smallest, and the current value, the smoothing coefficient is calculated. Finally, the two levels of smoothing are applied, one using the FAST_PERIOD and then using the SLOW_PERIOD to reduce the lag. The DSAMA comprises of the BLUE (bullish) and the RED (bearish) components. When the DSAMA is rising, the indicator is BLUE and when it is falling it turns RED. BUY / EXIT SHORT - Enter LONG (or exit SHORT) when the indicator turns BLUE from RED color. Place the stop-loss below the nearest Swing Low. It is recommended to employ a trailing stop when the trade turns profitable. SHORT / EXIT LONG - Enter SHORT (or exit LONG) when the Double Smoothed AMA indicator turns RED from BLUE color. Place the stop-loss above the nearest Swing High. It is recommended to employ a trailing stop when the trade turns profitable.
Follow Line VertexFX Indicator FollowLine is a powerful VertexFX indicator based on the Bollinger Bands (BB) indicator. The Bollinger Bands indicator is a powerful indicator to identify trading ranges. However it cannot identify how far the trend will continue, or when the trend will reverse. The FollowLine indicator employs a combination of Bollinger Bands, Moving Average and Average True Range to identify start and reversal of trend with minimal lag. The FollowLine indicator generates BUY and SELL arrows when the trade setups identified. Likewise, when the trend turns bullish the indicator is displayed in BLUE, and when bearish the indicator is displayed in RED. In the first step, we calculate the upper and lower Bollinger Bands using the BB_PERIOD and BB_DEVIATION parameters. We filter for condition when the price closes above the upper Bollinger Band, or below the lower Bollinger Band. If USE_ATR_FILTER is set to true then the ATR value is added to the upper Bollinger Band, or subtracted from the lower Bollinger Band as applicable. This provides us with a trailing stop. When the price crosses above the upper the Bollinger Band it signals the start of a bullish trend, and similarly when it crosses below the lower Bollinger Band it signals the start of a bearish trend. The indicator primarily employs a Stop And Reverse (SAR) mechanism, so when the LONG position is closed, it automatically signals a SHORT trade. BUY / EXIT SHORT - Enter LONG (or exit SHORT) when the BUY arrow is displayed and the FollowLine indicator turns BLUE. Place the stop-loss below the nearest Swing Low. It is recommended to employ a trailing stop when the trade turns profitable. SHORT / EXIT LONG - Enter SHORT (or exit LONG) when the SELL arrow is displayed and the FollowLine indicator turns RED. Please the stop-loss above the nearest Swing High. It is recommended to employ a trailing stop when the trade turns profitable.
Adaptive ATR VertexFX Indicator AdaptiveATR is a VertexFX indicator built based on the Average True Range (ATR) indicator. The Average True Range (ATR) provides information about the volatility of the price. However, one of the drawbacks of the ATR is that it does not provide the direction of the trend, or change in direction. The AdaptiveATR overcomes this drawback by using an adaptive feedback mechanism for calculating the ATR. The original ATR uses High, Low, and Close prices for calculations, whereas AdaptiveATR uses only High and Low prices. As a result, it exhibits a greater sensitivity to volatility and change in direction. In the first step, we calculate the average price based on the High and the Low. In the next step, we calculate the difference of the Average price from its previous Average price. Using concepts of signal-processing, the noise factor is calculated based on this difference. Finally, we subtract the noise from the accumulated Difference over the specified ATR Period. When AdaptiveATR is rising it implies that the trend is continuing with strength. On the contrary, when AdaptiveATR peaks out and starts falling it indicates that the trend has exhausted and the probability of reversal is imminent. BUY / EXIT SHORT - Enter LONG (or exit SHORT) when the AdaptiveATR indicator has peaked and the price is falling or has bottomed out. Place the stop-loss below the nearest Swing Low. It is recommended to employ a trailing stop when the trade turns profitable. SHORT / EXIT LONG - Enter SHORT (or exit LONG) when the AdaptiveATR indicator has peaked and the price is rising or has topped out. Place the stop-loss above the nearest Swing High. It is recommended to employ a trailing stop when the trade turns profitable.