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Vortex MT4 Indicator – Free MT4 Indicator 

 May 30, 2016

By  Advanced Strategies

The Vortex forex trading strategy is a trading strategy for the forex market which uses the Vortex MT4 indicator. This indicator works by the use of two lines, which perform a number of interactions with each other. Both lines are named VI+ (green colour) and VI- (red colour). These two lines can either be intertwined with each other, or can display a definitive cross pattern where a trend is detected on the asset. This cross and the subsequent trend is what is exploited for this trade setup.

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Vortex MT4 Indicator Strategy and Trading Rules

The Vortex MT4 indicator works by virtue of a crossover signal between VI+ and VI-. These two components of the Vortex indicator are represented by colour-coded lines. So when the VI+ line crosses above the VI- line, this is a signal to possibly go long on the asset. Conversely, when the VI- crosses above the VI+ line, it is a signal to initiate a short position on the asset. The crossover must be confirmed before the entry is made.

For the crossover strategy to work, the asset to be traded must be in a trend. Consolidation does not favour profitable trades and this is seen when the Vortex lines keep intertwining with each other. The use of filters is therefore mandatory to ensure that the signals produced for trading are of the best possible quality.

A possible way to filter the signals is to use the candle located at the point of a crossover between the VI+ and VI- lines. Once the next candle opens, set the trade to execute at that price. Usually, the cross occurs a little bit before the signal candle appears. This ensures that the entry candle only starts to form when the cross is complete.

Vortex MT4 Indicator Long Trade Entry Rules

A long trade entry is made when the following setup is displayed on the chart:

  • Allow crossover of VI+ above VI- to occur. This will occur at a candle which should be regarded as the signal candle.
  • When the next candle opens, execute the BUY trade at the open price.
Vortex MT4 Indicator Long Trade Entry Rules
Vortex MT4 Indicator Long Trade Entry Rules

Stop Loss and Take Profit Settings

The stop loss is set below the lowest point of the preceding 5 candles. This ensures that retreating price action does not close the trade in a loss in an otherwise potentially profitable setup.

The Take Profit point can be set at the nearest possible resistance, or can be set to coincide with when the two vortex lines start to converge once more.

Vortex MT4 Indicator Short Trade Entry Rules:

A short entry is made when the following setup occurs on the charts:

  • The VI- line crosses above the VI+ line. The candle which occurs at the area of the cross is considered as the signal candle.
  • As soon as the next candle opens, the short trade is executed at the open price. Most times, the cross of the Vortex MT4 indicator lines would have occurred before the entry candle appears, ensuring that no false signals are traded.
Vortex MT4 Indicator Short Trade Entry Rules
Vortex MT4 Indicator Short Trade Entry Rules

Stop Loss and Take Profit Settings

The stop loss is set above the highest point of the preceding 5 candles. This ensures that the stop loss for the trade is not prematurely triggered by any transient retreat of price action.

The Take Profit point can be set at the nearest possible support, or can be set to coincide with when the two vortex lines start to converge once more. As can be seen from the short trade example, the trend of the trade is likely to continue for a long time if the vortex lines are wide apart.

Vortex MT4 Indicator Recommended Time Frames

Technically speaking, you can use this indicator for all time frames. However, the shorter the time frame, you will see more fluctuation and possibly more whipsaw which may cause small losses that can eat up your portfolio quickly. We recommend that you use higher time frames like the 4H for better consistency.


Trading with the Vortex Indicator Video Tutorial


Trading with the Vortex MT4 Indicator Video Tutorial


Vortex MT4 Indicator Download

We have provided this powerful trend trading indicator to you at no cost. We humbly request for your help to spread the word by sharing on one of the social platforms below. To unlock the download link, you just need to share this page to help us achieve our goal of helping more traders out there.

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Leave us a comment below to let us know your thoughts on this indicator. If you like this indicator, you might like see other indicators that we have carefully selected that will help you in your trading journey.

And if you can, you really should invest in a proven MT4 Expert Advisor to help you generate some profit on full autopilot.

We highly recommend this powerful MT4 Expert Advisor.

Visit our Free MT4 Indicator Download page.

We hope you have enjoyed this post as much as we have creating it.

Good luck and thank you for your readership.


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