Follow Line VertexFX Indcator

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.

Comments

RSIofPSAR VertexFX Indicator

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 an...

SVEStochastic RSI VertexFX Indicator

The SVEStochasticRSI is a powerful VertexFX client-side indicator that identifies market cycles and the strength of a trend. As the name implies, it is an enhancement of the Stochastic RSI and was originally created by Sylvain Vervoort. The main advantage over the traditional StochasticRSI is that the method of calculating the RSI in this indicator is more responsive to price changes. As a result the lag is minimal. In the first step we calculate the RSI using the enhanced SVE method. We use a smoothing co-efficient ALPHA, which is the square-root of the reciprocal period for calculating the RSI. The price changes used to calculate the normal RSI are multiplied by the smoothing co-efficient to derive the SVE RSI. In the next step we calculate the Stochastic value of this RSI which is called the SVEStochasticRSI. The advantage of applying the Stochastic indicator to the RSI is that is when the price starts trending the indicator starts moving upwards or downwards very quickly thereby h...

Kauffman Volatality VertexFX Indicator

Kaufman Volatility indicator is a VertexFX client-side indicator script that provides a measure of volatility and in identifying the current stage of the market. This indicator was designed by Perry Kaufman and is used in combination with other indicators to estimate stop-loss and volatility characteristics of the market. When the market is in a consolidation phase, the Kaufman Volatility indicator is dropping in value. On the contrary, when the market is trending strongly (either bullish or bearish) the Kaufman Volatility indicator is rising. It does not provide us with the direction of the trend, but only the strength of the trend. To calculate the Kaufman Volatility, we first find the absolute difference in the Close of the current candle from the previous candle. This absolute difference is then added over the recent PERIOD bars to derive the Kaufman Volatility indicator. The Kaufman Volatility indicator does not provide BUY or SELL signals. BUY - This indicator does ...

VertexFX Indicator

Search This Blog