579# Vortex Trading System
How to trade with Vortex indicator with a filter level
Submit by Leviatanfx 19/06/2014
The Vortex indicator is developed by Etienne Botes and Douglas Siepman.
The Vortex indicator consist of two oscillators mesuring upward an downward movement. The Vortex indicastor is inspires by the natural flow and vortex of water that occur in the rivers.
“The Vortex Indicator (VTX) can be used to identify the start of a trend and subsequently affirm trend direction. First, a simple cross of the two oscillators can be use to signal the start of a trend. After this crossover, the trend is up when +VI is above - VI and down when - VI is greater than +VI. Second, a cross above or below particular level can signal the start of a trend and these levels can be used to affirm trend direction. “ (source http://stockcharts.com/)
In this trading system i have add a filter at the level 1.05 in order to improve the performance of the vortex.
In fact, with this filter, the vortex is much improved in forecast of the market.
Time Frame H1.
Markets: Stocks, Indicies, Futures, Forex.
Vortex Indicator (28 period);
Megatrend (89, period).
Rules for Vortex Trading System
Condition: VM signals above 1,05 level (dot red lide into the vortex indicator).
When VM+ crosses above VM- the trader should open a long position with
Megatren line blue color.
When VM- crosses below VM+ the trader should open a short position with
Megatren line red color.
Stop loss 2 pips above or below Dot line (blue and red of Buy- Sell Indicator).
See examples in the pictures.