Thread: I4_DRF – VertexFX Indicator

The I4_DRF indicator is a comparative indicator that determines the start of a trend. Likewise, it can be used to determine the exhaustion of a trend.
It calculates the number of occurrances of up closes and down closes of the current close compared to the close between the last 11 to 21 candles ago. Whenever the current candle closes above the candle 11 bars ago, the count is incremented. Whereas if the current candle closes below the candle 11 bars ago the count is decremented. This procedure is repeated from 11 bars ago to 21 bars ago, and the cumulative sum is presented as I4_DRF value.
Whenever the market starts trending up, the indicator value starts rising. When the market is in uptrend, the indicator value is either rising or stabilizes above zero. Finally when the market starts falling, the indicator value too starts falling exhibiting a change in trend. The opposite occurs when the market is falling and then starts rising.

BUY - Enter BUY when the indicator rises from -11 to cross above 0.
SELL - Enter SELL when the indicator falls from +11 to cross below 0.