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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.
오픈 소스 스크립트
진정한 트레이딩뷰 정신에 따라 이 스크립트 작성자는 트레이더가 기능을 검토하고 검증할 수 있도록 오픈소스로 공개했습니다. 작성자에게 찬사를 보냅니다! 무료로 사용할 수 있지만 코드를 다시 게시할 경우 하우스 룰이 적용된다는 점을 기억하세요.
면책사항
이 정보와 게시물은 TradingView에서 제공하거나 보증하는 금융, 투자, 거래 또는 기타 유형의 조언이나 권고 사항을 의미하거나 구성하지 않습니다. 자세한 내용은 이용 약관을 참고하세요.
오픈 소스 스크립트
진정한 트레이딩뷰 정신에 따라 이 스크립트 작성자는 트레이더가 기능을 검토하고 검증할 수 있도록 오픈소스로 공개했습니다. 작성자에게 찬사를 보냅니다! 무료로 사용할 수 있지만 코드를 다시 게시할 경우 하우스 룰이 적용된다는 점을 기억하세요.
면책사항
이 정보와 게시물은 TradingView에서 제공하거나 보증하는 금융, 투자, 거래 또는 기타 유형의 조언이나 권고 사항을 의미하거나 구성하지 않습니다. 자세한 내용은 이용 약관을 참고하세요.