VHF determines whether prices are in trending or congestion phase. Rising edge signifies a trend, falling edge signifies prices may be entering congestion phase.
Many use this as a contrarian indicator, which is my personal preference too.
I have added an option to plot EMA too, to see how strong the trend/no-trend values are.
Many use this as a contrarian indicator, which is my personal preference too.
I have added an option to plot EMA too, to see how strong the trend/no-trend values are.
List of my free indicators: bit.ly/1LQaPK8
List of my indicators at Appstore: blog.tradingview.com/?p=970
List of my indicators at Appstore: blog.tradingview.com/?p=970
// // @author LazyBear // VHF determines whether prices are in trneding or congestion phase. // study(title = "Vertical Horizontal Filter [LazyBear]", shorttitle="VHF_LB") src=close length=input(28, title="VHF Period") showEma=input(false, title="Show EMA?", type=bool) hcp=highest(src, length) lcp=lowest(src, length) cdiff=abs(close-close[1]) N=abs(hcp-lcp) D=sum(cdiff, length) vhf=N/D plot(vhf) plot(showEma ? ema(vhf, length) : na, color=orange, linewidth=2)
