VertexFX Indicator

The Consecutive RSI is a powerful VertexFX client-side indicator based on the Relative Strength Index (RSI). The Relative Strength Index (RSI) indicator is useful in identifying the current trend, and its strength. When the RSI is rising it indicates a bullish trend and when it is falling it indicates a bearish trend. It is observed that in strong trending markets, prices tend to rise fast when they reach overbought levels. Likewise prices tend to fall quickly when the reach oversold levels. This is because when the trend is strong and it attracts more (and new) market participants. As a result traders can expect to make good profits when the Consecutive RSI generates signals. In the first step we calculate the Relative Strength Index. A BUY signal is generated when the RSI crosses above the overbought level (e.g. 70) from below, and is rising consecutively for the specified number of candles. This implies a strong bullish trend with new market participants. The price tends to rise

The KalmanFilterVelocity (KFV) is a powerful VertexFX client-side indicator based on the Kalman Filter (KF) algorithm. The KalmanFilterVelocity indicator employs the Kalman Filter to estimate the direction and strength of the trend. It is particularly useful in identifying reversal or trends. It enhances the standard Kalman Filter but detecting the velocity (the rate of change) of the base Kalman   Filter. A change in the direction of the velocity implies a change a trend. In the first step we calculate the Kalman Filter also known as Linear Quadratic Estimation for all the prices. We use the change in the closing price of each candle and its predecessor to estimate whether this change is sustainable. Hence, if prices are rising, but at a slower rate it implies that the trend is ending. Likewise, if the price is falling, but at a slower rate it implies that the bearish trend is ending. When the KFV changes from RED to BLUE below the zero level it implies that a strong bullish tr

The Welford Variance indicator is a useful VertexFx client-side indicator for identifying trend changes on higher time-frames. It calculates the standard deviation and variance of the price changes over the Variance Period (VAR_PERIOD), and then smoothes it using a smoothing co-efficient. The Welford Variance indicator should be used in combination with other trend-following oscillators like Relative Strength Index (RSI), Moving Average Convergence Divergence (MACD) or Stochastic Oscillator. The standard deviation defines how much the current price is deviating from the mean price. Higher the standard deviation, greater is the volality. In the first step, we calculate the mean and standard deviation of the recent VAR_PERIOD candles. In the next step, we calculate the variance by subtracting the price from the standard deviation. Finally, we smooth the variance, using the co-efficient, which is reciprocal of (1 + VAR_PERIOD). When the variance increases, the probabilty of fast p

The Trend Interruption Average (TIA) is a powerful VertexFX client-side indicator based on Moving Average useful in identifying price swings and strength of a trend. In an uptrending market we see consecutive positive closes. Likewise, in a downtrending market we see consecutive negative closes. The TIA indicator uses the positive / negative consecutive closes to calculate the strength of the trend and potential reversal. The TIA comprises of three components, namely the TIA-Up (GREEN) line, the TIA-Down (RED) line, and the TIA-Difference (BLUE) line. In the first step, we calculate the cumulative sum of positive closes. If the current close is above previous close, it is assigned a value of 1. If next candle closes above current close, the cumulative count is increment by 1, otherwise it is reset to 0. For example, if there were three consecutive positive closes, the value of cumulative count will be 1, 2 and 3 for the recent three candles. Similarly, the opposite logic is employ

he RMA (Relative Moving Average) is a powerful VertexFX client-side indicator based on the Simple Moving Average indicator. The Simple Moving Average (SMA) indicator is useful to identify the start and reversal of a trend. When the price closes above the SMA it is considered bullish signal, and when it closes below the SMA it is considered bearish signal. However, one of the major drawbacks of the SMA is lag and whipsaws. The SMA is a lagging indicator, and as a result the signals are late thereby reducing profit opportunities. Similarly in sideways markets, the SMA generates whipsaws which can result in too many trades and losses. The RMA indicator attempts to remove the drawbacks of the SMA by reducing the lag period. The RMA is calculated using three moving averages, namely long term, medium term and short term. The long term period is computed as three times the RMA_PERIOD. The medium term is computed as twice the RMA_PERIOD, and the short term is computed using the RMA_PERIOD.

The Kirshenbaum Bands is a powerful VertexFx client-side indicator which attempts to reduce the lag and enhance the accuracy of the Bollinger Bands. It is an improvement over the Bollingers Bands and is used primarily to identify trend reversals. One of the main disadvantages of the Bollinger Bands is that it has lag and is slow to respond to trend reversals. The standard deviation is calculated in a linear fashion - the recent price movements have the same weightage as older price movements. As a result, it is slow to respond to the recent price movements. The Kirshenbaum Bands overcomes this issue and giving a higher weightage to the recent price movements. Likewise, if uses Exponential Moving Average (EMA) as compared to the Simple Moving Average (SMA) of the Bollinger Bands. Since higher weightage is given to recent price movements, Kirshenbaum Bands responds to trend reversals quickly. In the first step, we calculate the moving average of the specified price field (BAND_PRICE)

The Dynamic Zone RSI is a powerful VertexFX client-side indicator based on the Relative Strength Index (RSI) and Bollinger Bands used to identify market swings. The Relative Strength Index (RSI) indicator is useful in identifying the current trend, and its strength. When the RSI bottoms out and starts to rise it implies a bullish trend. On the contrary, when the RSI tops out and starts to fall it implies a bearish trend. The Bollinger Bands provides a trading range for the price based on standard deviation. The Dynamic Zone RSI indicator combines these two indicators to provide a composite overview of the trend. In the first step, the RSI is calculated based on the RSI period. In the second step, the Bollinger Bands of this RSI are calculated to generate the center, upper and lower RSI zones. The range between the upper and lower band is called the Dynamic Zone. When the RSI is below the lower band, the trend is bearish. When it turns sideways or bottoms out, the trend now becomes