V.18:7 (42-48):Vertical Horizontal Filter by Jayanthi Gopalakrishnan
Product Description
Vertical
Horizontal
Filter by Jayanthi Gopalakrishnan
This filter can tell you whether a market is going through a trending or congestion phase, and whether you should use trend-following indicators if the markets are trending or congestion-phase indicators if markets are in a trading range.
It's always a challenge to determine which indicator you should use to help you make your trading decisions. Markets go through various stages such as trending or congestion phases, and you cannot use the same indicators for all the different phases. As a result, you must identify the different phases of the markets before you can apply the indicator appropriate for that stage.
The vertical horizontal filter (VHF), which was introduced by Adam White in 1991, is one indicator you can use to determine whether a security is going through a congestion phase or a trending phase. The VHF is not your typical indicator that gives you buy and sell signals; what the VHF does is help you decide which indicators to apply. During a trending phase, the vertical rise in prices is stronger than during a congestion phase. The VHF measures the vertical rise in prices over time.
The calculation of the VHF indicator is relatively simple, and it is explained in the sidebar, "The vertical horizontal filter."
This filter can tell you whether a market is going through a trending or congestion phase, and whether you should use trend-following indicators if the markets are trending or congestion-phase indicators if markets are in a trading range.
It's always a challenge to determine which indicator you should use to help you make your trading decisions. Markets go through various stages such as trending or congestion phases, and you cannot use the same indicators for all the different phases. As a result, you must identify the different phases of the markets before you can apply the indicator appropriate for that stage.
The vertical horizontal filter (VHF), which was introduced by Adam White in 1991, is one indicator you can use to determine whether a security is going through a congestion phase or a trending phase. The VHF is not your typical indicator that gives you buy and sell signals; what the VHF does is help you decide which indicators to apply. During a trending phase, the vertical rise in prices is stronger than during a congestion phase. The VHF measures the vertical rise in prices over time.
The calculation of the VHF indicator is relatively simple, and it is explained in the sidebar, "The vertical horizontal filter."
FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.
| Take Control of Your Trading. |
| Professional Traders' Starter Kit |
| All these items shown below only $299.99! |
| Click Here to Order |