Vortex Indicator Guide for MT4/MT5

Vortex indicator for Metatrader 4 (MT4) was presented in the article “the vortex indicator” and published in January 2010 of “Technical Analysis of Stocks and Commodities”. It is created by Etienne Botes and Douglas Siepman which was inspired by the work of Victor Schauberger, who studied the flow of water in turbines and rivers. Botes and Siepman said that the movements in financial markets are identical to the vortex strategy in water. Moreover, the MT5 vortex indicator belongs to the category of oscillator indicators, it helps Forex traders to pinpoint new or existing trends in the market. In this course, we will examine the vortex indicator Tradingview and MetaTrader, in order to understand it and use it correctly in your Forex tradings.

Vortex Indicator FAQ

What is vortex indicator ?

Vortex strategy consists of two lines that oscillate up and down, which perform the number of intersections with each other. One line is called plus VI and helps to capture upward movement. And the other line is called negative VI which helps to catch downward movement. The vortex’s lines are not included between upper and lower limits like most oscillators are. Therefore the upper and lower vortex lines can extend to greater values. However, Forex traders can fix maximum and minimum values in the scale tab in the indicator properties to fit their goals. It gives you the opportunity to detect diverse specificities and patterns in price dynamics that are invisible to the naked eye.

How does it work?

Vortex MT4 indicator displays two oscillating lines in a separate window below the chart. When these lines intersect, they create a vortex shape. These lines provide useful information and help you pinpoint higher and lower trends. You can modify the default settings to fit your preferences. This indicator works with all kinds of timeframes and currency pairs.

How to trade with it?

Vortex MT5 indicator is very easy to use. But before, You have to install it, because it is not available on the MetaTrader platform. Moreover, it is a free download indicator. Once you attach it to your chart the two vortex lines appear immediately. And your trading system will base according to them as they will provide you with a lot of trading information. However, when the price moves more powerfully the two lines will diverge. while, when the price is stagnant or ranging, the two lines will close to each other.

Moreover, This MT5 indicator can give you information about new and existing trends. If the VI+ line crosses above the VI- line and stays on top, it tells that there is a likely upward price momentum. And will provide a buy signal. Otherwise, when the VI- line crosses above the VI+ line and stays on top, it tells that there is a likely downward price momentum. And will provide a sell signal.

Buy and sell conditions:

  • Buy conditions: Enter a long position when:
  1. The positive vortex line moves above the negative Vortex line.
  2. Price breaches above its recent high.
  3. Exist a buy position when the negative VI line moves above the positive VI line.
  • Sell conditions: Enter a short position when:
  1. The negative VI line moves above the positive VI line.
  2. Price breaches its recent low.
  3. Exist a sell position when the negative VI line falls below the positive VI line.

Vortex formula

To calculate Tradingview vortex indicator, there are four steps that you have to follow:

  1. Calculate the true range (TR), which is developed by Welles Wilder, and it is used to measure the volatility. The TR is the greatest of:
  • recent high – recent low (absolute value)
  • recent high – prior close (absolute value)
  • recent low – prior close (absolute value)

    2. Determine the positive and negative movements in terms of the highs and lows of the last two periods (days):

  • VM+ =  recent high – prior low ( absolute value)
  • VM- = recent low – prior high ( absolute value)

    3. Put the parameter length (n). Generally, traders use periods between 14 and 30 days. you Calculate the sum of the last n periods’ TR, VM-, and VM+, which is as follow:

  • ∑ of the last n periods’ TR = ∑ TRn
  • ∑ of the last n periods’ VM+ = ∑ VMn+
  • ∑ of the last n periods’ VM- = ∑ VMn-

    4. Create the two trendlines: VM+ and VM-. Therefore you need to employ the following equations to calculate these lines:

  • VIn+ = ∑ VMn+ / ∑ TRn
  • VIn- = ∑ VMn- / ∑ TRn

To obtain the VI+ and VI- you need to daily repeat this process.

Download Vortex indicator for MT4

MT4 Vortex indicator is an oscillator indicator that displays two oscillating lines below the main trading chart. these lines are generally red and blue. The blue line corresponds to the positive vortex line (VI+), and the red one corresponds to the negative vortex line (VI-). You can modify these colors also the period to suit your preferences. In addition, this MT4 indicator helps Forex traders to identify the direction of the trend. Here is a picture from the MetaTrader 4 platform. 

Vortex indicator MT4

Download Vortex indicator for MT5

Vortex MT5 indicator gives users lots of trading opportunities. Among them, it provides buy and sell signals. These signals happen when the vortex lines cross with each other. Therefore, when the VI+ line crosses above the VI-, it generates a buy signal. Otherwise, if VI- line crosses above the VI+ line, it generates a sell signal.

Vortex indicator MT5


Vortex indicator for MetaTrader and Tradingview is a simple but useful tool that you can apply at any timeframe and with any type of financial security. In fact, this MT5 indicator is based on two lines which help traders to identify the direction and the strength of the trend, different buy and sell signals, and reversal zones. But keep in mind that it can produce false signals, and to reduce those false signals you can use greater periods.