Indicator: Vertical Horizontal Filter (VHF)

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The RAVI indicator computes the percentage difference between the most recent prices and older prices.

Introduction

Home > Technical analysis > Indicators and oscillators > Vertical Horizontal Filter. Vertical Horizontal Filter. The Vertical Horizon Filter illustrates the trendiness of certain equity. It lets indicate if the stock is following a trading range or a trend. Adam White developed it. If the Vertical Horizon Filter is growing, this is likely to demonstrate that a trend is forming.

In order to calculate High and Low Prices, Adam used 28 days data. Later on, he went to use 18 day data smoothed with a six day moving average to study the Indicator.

There are three common ways to study VHF Indicator:. Features at a Glance! There are three common ways to study VHF Indicator: VHF Outcome is a significant indicator of the trend prevailing in the market. As the value of VHF moves upward, the degree of trending moves upward as well and vice versa. This means that trend following indicators can be used to predict future trends. Similarly, extremely low VHF Values indicate an upcoming trending period in the market.

So, the traders can rely on the values of VHF. If the values of VHF are high, trend would be sharp. Contrarily, if the VHF values are low, trend would be stable and within a range.

Similarly, high VHF values indicate a trend reversal approaching the market. Oscillators including RSI are handy when the market is ranging, but often signal premature decisions when prices pull back. VHF Indicator determines the current as well as upcoming trend in the market.

If the VHF Values have gone too high, it means a trend reversal. A longer term example: See Indicator Panel for directions on how to set up an indicator. The default Vertical Horizontal Filter window is 28 days. To alter the default settings - see Edit Indicator Settings. Many investors follow active strategies but end up being reactive, rotating in and out of stocks at the wrong time.

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