Charts

Vertical Horizontal Filter

Description

Created by Adam White, the Vertical Horizontal Filter helps the user determine whether a particular price is trending. The higher the Vertical Horizontal Filter value, the more a particular contract is trending. In addition, the direction of the Vertical Horizontal Filter shows what phase the Vertical Horizontal Filter is entering:

  • A rising Vertical Horizontal Filter means that prices are trending.
  • A falling Vertical Horizontal Filter means that prices are stablizing around a specific range.

Selecting the Vertical Horizontal Filter allows you to set the Period (as number of minutes) and the color of the result.

Formula

The Vertical Horizontal Filter is calculated as follows:

\frac{ABS(High Closing Price - Low Closing Price)}{ \sum_{j=1}^{n}ABS(Close_{j} - Close_{j-1})}