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The article by Etienne Botes and Douglas Siepman in this issue, “The Vortex Indicator”, demonstrates another reliable technical indicator for trading a change in market direction. The vortex indicator was developed as a new directional movement indicator, drawing inspiration from J. Welles Wilder’s directional movement indicator, as well as another unrelated and improved directional indicator.

Using Indicator Builder, one needs to create two indicators: Vortex Indicator Plus and Vortex Indicator Minus.

Here is the Tradecision code for the Vortex Indicator Plus:

Vortex Indicator Plus:

input
 Length:"Length",14;
end_input

 var
 VMPlus:=0;
 VMPlusS:=0;
 VMTR:=0;
 VMTRS:=0;
 VIPlus:=0;
 end_var

 VMPlus:= Abs(High - Low\1\);
 VMPlusS:=CumSum(VMPlus,Length);

 VMTR:= Max(VMPlus, Abs(High - Close\1\), 
 Abs(Low - Close\1\));  VMTRS:=CumSum(VMTR,Length);

 VIPlus:= VMPlusS/VMTRS;

 return VIPlus;

Here is the Tradecision code for the Vortex Indicator Minus:

Vortex Indicator Minus:

input
 Length:"Length",14;
end_input

 var
 VMPlus:=0;
 VMMinus:=0;
 VMMinusS:=0;
 VMTR:=0;
 VMTRS:=0;
 VIMinus:=0;
 end_var

 VMPlus:= Abs(High - Low\1\);
 VMMinus:=Abs(Low - High\1\);
 VMMinusS:=CumSum(VMMinus,Length);

 VMTR:= Max(VMPlus, Abs(High - Close\1\), 
 Abs(Low - Close\1\));  VMTRS:=CumSum(VMTR,Length);

 VIMinus:= VMMinusS/VMTRS;

 return VIMinus;