The vortex indicator (VI) is a technical indicator used to identify new or existing trends in the financial markets. · The vortex indicator is composed of two indicator​ ...VortexIndicator(VI)AtechnicalindicatorusedtoidentifyneworexistingtrendsinthefinancialmarketsHome›Resources›Knowledge›Trading&Investing›VortexIndicator(VI)WhatistheVortexIndicator(VI)?Thevortexindicator(VI)isatechnicalindicatorusedtoidentifyneworexistingtrendsinthefinancialmarkets.Likeothertechnicalindicators,thevortexindicatoruseshistoricalpricedatatopredicttrendsinthepricesofstocks,commoditiesCommoditiesCommoditiesareanotherclassofassetsjustlikestocksandbonds.Mostcommoditiesareproductsthatcomefromtheearththatpossess,orcurrencies.  Thevortexindicatoriscomposedoftwoindicatorlines,eachrepresentingeitherpositiveornegativepricetrends.Whenconstructedaspartofthevortexindicator,thelinesintersecttoproduceavortexshape.Typically,vortexindicatorsareusedaspartoftradingstrategiesDirectionalTradingStrategiesDirectionaloptionsstrategiesaretradesthatbetontheupordownmovementofthemarket.Forexample,ifaninvestorbelievesthemarketisrising,designedtopredictupwardordownwardpricetrendsbasedonexistingdata. SummaryThevortexindicator(VI)isatechnicalindicatorusedtoidentifyneworexistingtrendsinthefinancialmarkets.Thevortexindicatoriscomposedoftwoindicatorlines,eachrepresentingapositiveoranegativepricetrend.Generally,theindicatorline(VI+orVI-)thatremainsontopindicateswhetherastockisexperiencinganupwardordownwardtrend. UnderstandingtheVortexIndicatorThevortexindicatorisatechnicalindicatorthatuseshistoricalpricedatatoidentifytrendsinthepriceofassetssuchasstocks.ThefoundationsoftheVIinvolvetheuseofpricebars.Apricebarissimplyarepresentationofthehighestandlowestpricesofastockovertime.Forexample,thedailypricebarofAmazonwouldshowthehighestandlowestpricesofAmazonstockoverasingletradingday.Thevortexindicatorconnectsthehighsofamarket’spricebarswiththelowsofthenextpricebar.Atthesametime,thelowsofamarket’spricebarsareconnectedtothehighsof