The VIplus function is part of the Vortex Indicator (VI), a technical analysis tool used to identify the start of a new trend or the continuation of an existing trend in financial markets. The VIplus specifically measures the upward trend movement by comparing the current high to the previous low over a specified period.
Syntax:
VIplus[period]Where period specifies the number of bars used for the calculation.
Example:
myVIplus = VIplus[14]
This example calculates the VIplus line of the Vortex Indicator using a 14-period setting.
Calculation Details:
- VI+ (Vortex Indicator positive) measures the distance between a previous low and a subsequent high within the given period.
- VI- (Vortex Indicator negative) measures the distance between a previous high and a subsequent low, but is not calculated in the VIplus function.
Interpretation:
- A positive trend is indicated when VI+ is above VI-.
- A negative trend is suggested when VI- is above VI+.
- The Vortex Indicator gives a bullish signal when VI+ crosses over VI-.
- A bearish signal is indicated when VI+ crosses under VI-.
This function is useful for traders looking to assess the strength of trend movements and potentially identify trend reversals or continuations based on the crossing of the VI+ and VI- lines.