A problem I noticed with the built in Vortex indicator was that it didn't include any defined thresholds that are important to understanding how to read the vortex indicator. So I modified the vortex indicator in order to have the thresholds built in so you don't have to draw horizontal lines on your chart.
I compared the Vortex indicator several times with the Directional Movement Index (DMI) by Welles Wilder, and although the authors of the Vortex indicator claim that their indicator is better, my conclusion is that the DMI is superior. At least I recommend to use both the DMI and the Vortex at the same time for more confirmation of trends.
Rashad
⋅
Maybe, but defining thresholds on the Vortex indicator makes it much easier to read, and should be useful when comparing it to the DMI.
ChartArt
⋅
What I wanted to say is: Please define thresholds on the DMI indicator, too - to make it much easier to read, as well.
Rashad
⋅
Normally you would have a center line at 25 when using DMI, however I am going to research DMI heavily and do some back testing to see if I can come up with some reliable thresholds in DMI.
ChartArt
⋅
When you back-test the DMI, you can also compare the Vortex with the Trend Continuation Factor and add a threshold for that one, too :D