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:
Selecting the Vertical Horizontal Filter allows you to set the Period (as number of minutes) and the color of the result.
The Vertical Horizontal Filter is calculated as follows:
\[ VHF = \frac{ABS(High Closing Price - Low Closing Price)}{ \sum_{j=1}^{n}ABS(Close_{j} - Close_{j-1})} \]