OPEN-SOURCE SCRIPT
Smoothed Vortex Indicator
The Smoothed Vortex Indicator (SVI) is an enhanced version of the original Vortex Indicator (VI), designed to provide traders with a more refined and smoother representation of trend strength and potential reversals in financial markets. While both indicators share the same concept of measuring directional movement and true range, the SVI incorporates the Hull Moving Average (HMA) to achieve additional smoothing, differentiating it from the standard Vortex Indicator.
The original Vortex Indicator (VI) consists of two lines, VI+ and VI-, which represent the positive and negative directional movements, respectively. It calculates the True Range (TR), Plus Directional Movement (PDM), and Minus Directional Movement (MDM) over a specified period, usually 14 periods, and then calculate the Simple Moving Averages (SMAs) of VI+ and VI- based on these values.
On the other hand, the Smoothed Vortex Indicator (SVI) utilizes the HMA to improve precision and reduce lag in trend identification. The HMA is itself a weighted moving average of two WMAs and is known for its smoothing characteristics. The SVI first calculates the VI+ and VI- values as in the original VI and then applies the HMA formula to each of these values separately.
To add further flexibility to the SVI, it introduces a user-defined Weighting Factor. This factor allows traders to fine-tune the smoothing effect applied to VI+ and VI-. By multiplying the weighted VI values with the HMA, the SVI ensures a smoother representation of trend strength, making it easier for traders to identify trends and potential reversal points in the market.
In summary, the Smoothed Vortex Indicator (SVI) enhances the original Vortex Indicator by incorporating the Hull Moving Average (HMA) for additional smoothing and introducing a customizable Weighting Factor. This improved version provides traders with a more refined and visually smoother indicator, aiding them in making better-informed trading decisions based on trend strength and possible market reversals.
The original Vortex Indicator (VI) consists of two lines, VI+ and VI-, which represent the positive and negative directional movements, respectively. It calculates the True Range (TR), Plus Directional Movement (PDM), and Minus Directional Movement (MDM) over a specified period, usually 14 periods, and then calculate the Simple Moving Averages (SMAs) of VI+ and VI- based on these values.
On the other hand, the Smoothed Vortex Indicator (SVI) utilizes the HMA to improve precision and reduce lag in trend identification. The HMA is itself a weighted moving average of two WMAs and is known for its smoothing characteristics. The SVI first calculates the VI+ and VI- values as in the original VI and then applies the HMA formula to each of these values separately.
To add further flexibility to the SVI, it introduces a user-defined Weighting Factor. This factor allows traders to fine-tune the smoothing effect applied to VI+ and VI-. By multiplying the weighted VI values with the HMA, the SVI ensures a smoother representation of trend strength, making it easier for traders to identify trends and potential reversal points in the market.
In summary, the Smoothed Vortex Indicator (SVI) enhances the original Vortex Indicator by incorporating the Hull Moving Average (HMA) for additional smoothing and introducing a customizable Weighting Factor. This improved version provides traders with a more refined and visually smoother indicator, aiding them in making better-informed trading decisions based on trend strength and possible market reversals.
Script open-source
Dans l'esprit de TradingView, le créateur de ce script l'a rendu open-source, afin que les traders puissent examiner et vérifier sa fonctionnalité. Bravo à l'auteur! Vous pouvez l'utiliser gratuitement, mais n'oubliez pas que la republication du code est soumise à nos Règles.
Pour un accès rapide sur un graphique, ajoutez ce script à vos favoris - en savoir plus ici.
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Script open-source
Dans l'esprit de TradingView, le créateur de ce script l'a rendu open-source, afin que les traders puissent examiner et vérifier sa fonctionnalité. Bravo à l'auteur! Vous pouvez l'utiliser gratuitement, mais n'oubliez pas que la republication du code est soumise à nos Règles.
Pour un accès rapide sur un graphique, ajoutez ce script à vos favoris - en savoir plus ici.
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.