Forex Vortex Moving Average System is swing trend following system it’s based on the Moving Average indicator foiltered by Vortex.
The vortex indicator plots two oscillating lines, one to identify positive trend movement and the other to identify negative price movement. Crosses between the lines trigger buy and sell signals that are designed to capture the most dynamic trending action, higher or lower.
There’s no neutral setting for the indicator, which will always generate a bullish or bearish bias. You can find the complete vortex indicator calculations here.
Indicator construction revolves around the highs and lows of the last two days or periods. The distance from the current high to the prior low designates positive trend movement while the distance between the current low and the prior high designates negative trend movement. Strongly positive or negative trend movements will show a longer length between the two numbers while weaker positive or negative trend movement will show a shorter length.
Readings are usually captured over 14 periods (though the technician can choose any length), and then adjusted using technical indicator creator J. Welles Wilder’s true range. Results are posted as continuous lines beneath price bars, while crossovers are compared to other trend-following indicators to produce valid trading signals.
Traders can use the vortex indicator as a standalone signal generator, but keep in mind it is vulnerable to significant whipsaws and false signals in congested or mixed markets.
Time Frame : 30 min or higher;
Marketes: Forex, Indicies, Commodities.
- Moving Average 12
- Moving Average 5
- FXbay MACD
- Vortex Indicator: 30 min, 60 min, 240 min with level 1.05; daily time frame level 1.00.
Find trending market and apply the template. Trade only in the direction of the trend.
- MA 5 above MA 12
- Vortex green line above red line and level 1.05 (daily time frame the same but level is 1.00)
- FXbay MACD aqua line above red line
- MA 5 below MA 12
- Vortex red line above green line and level 1.05 (daily time frame the same but level is 1.00)
- FXbay MACD aqua line below red line
Exit position is discretionary
Profit Target 1.3 ratios stop loss.
Initial stop loss on the previous swing. You can also use the trailing stop an breakeven stop.