OPEN-SOURCE SCRIPT

Vertical Horizontal Filter VHF by KIVANÇ fr3762

Vertical Horizontal Filter
Vertical Horizontal Filter (VHF) was created by Adam White to identify trending and ranging markets. VHF measures the level of trend activity, similar to ADX in the Directional Movement System. Trend indicators can then be employed in trending markets and momentum indicators in ranging markets.

Vary the number of periods in the Vertical Horizontal Filter to suit different time frames. White originally recommended 28 days but now prefers an 18-day window smoothed with a 6-day moving average.

Trading Signals
Vertical Horizontal Filter does not, itself, generate trading signals, but determines whether signals are taken from trend or momentum indicators.

Rising values indicate a trend.
Falling values indicate a ranging market.
High values precede the end of a trend.
Low values precede a trend start.


I have added an option to plot a deafult value of 14 bar EMA too, to clarify the signals.


Formula
To calculate the Vertical Horizontal Filter:

Select the number of periods (n) to include in the indicator. This should be based on the length of the cycle that you are analyzing. The most popular is 28 days (for intermediate cycles).
Determine the highest closing price ( HCP ) in n periods.
Determine the lowest closing price (LCP) in n periods.
Calculate the range of closing prices in n periods:
HCP - LCP
Next, calculate the movement in closing price for each period:
Closing price - Closing price
Add up all price movements for n periods, disregarding whether they are up or down:
Sum of absolute values of ( Close - Close ) for n periods
Divide Step 4 by Step 6:
VHF = ( HCP - LCP) / (Sum of absolute values for n periods)


created by Adam White
FR3762kivancTrend AnalysisVertical Horizontal Filter (VHF)

Script de código abierto

Siguiendo fielmente el espíritu de TradingView, el autor de este script lo ha publicado en código abierto, permitiendo que otros traders puedan entenderlo y verificarlo. ¡Olé por el autor! Puede utilizarlo de forma gratuita, pero tenga en cuenta que la reutilización de este código en la publicación se rige por las Normas internas. Puede añadir este script a sus favoritos y usarlo en un gráfico.

¿Quiere utilizar este script en un gráfico?


Telegram t.me/AlgoRhytm

YouTube (Turkish): youtube.com/c/kivancozbilgic

YouTube (English): youtube.com/c/AlgoWorld
También en:

Exención de responsabilidad