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Trend Signal - VertexFX Indicator
Trend Signal is a powerful VertexFX client side VTL indicator that gives precise entry and exit signals. This indicator is based upon the Average Directional Movement (ADX) and Directional Movement +DI (PDI) and -DI (MDI) indicators.
In the first step we calculate the ADX over the ADX_PERIOD. In the next step we calculate the dynamic period (SSP) by dividing K_PERIOD by this ADX value. Next, we calculate the Highest High and Lowest Low over this dynamic period (SSP).
The Highest High and Lowest Low are smoothed using the smoothing constant K. A BUY signal is generated if the price closes above the smoothed Highest High, and a SELL signal is generated if the price closes below the smoothed Lowest Low.
BUY - Enter BUY position at close of candle when indicator displays GREEN BUY arrow. Do no open position if candle has gap-up opening. Stop can be place at the nearest swing low during a BUY position.
SELL - Enter SELL position at close of candle when indicator displays RED SELL arrow. Do not open position if candle has gap-down opening. Stop can be placed at the nearest swing high during a SELL position.