📉 📊 📈$BTC
The Vortex Indicator is a technical analysis tool that helps traders determine the direction and strength of a trend. Developed by Etienne Botes and Douglas Siebert in 2010, it is based on the idea of 'vortex' price movements that reflect the struggle between bulls and bears. In the context of the cryptocurrency market, where trends can change instantly, Vortex becomes particularly relevant.
The indicator consists of two lines: VI+ (positive movement) and VI- (negative movement). VI+ measures the strength of the upward trend by comparing the highs and lows of price over a certain period, while VI- reflects downward pressure. Values typically range from 0 to 1, but the key is the crossing of these lines: when VI+ crosses VI- from below to above, it signals a buy, and a reverse crossing signals a sell. The standard period for calculation is 14 candles, although traders can adapt it to their strategies.
In cryptocurrency trading, Vortex is valuable because it works well in high volatility conditions. For example, during a rapid rise in Bitcoin or a sharp drop in altcoins, it helps filter out the 'noise' and determine whether the trend has enough strength to continue. Unlike RSI, which focuses on overbought/oversold conditions, Vortex emphasizes the dynamics of movement.
The advantages of Vortex include ease of interpretation and the ability to predict trend reversals. However, it is not perfect: in sideways movement (flat), the indicator can give false signals, so it is recommended to combine it with other tools, such as moving averages or trading volumes.
For crypto traders, Vortex is a way to 'catch the wave' in a turbulent market. It does not replace analysis, but adds confidence in decision-making, especially when every minute counts.