Trend Bars Indicator


Trend Bars is a VertexFX client side VTL indicator that identifies market cycles and reversals in market trends. The indicator is built in a separate window in the form of a histogram of red and green lines. The concept behind the Trend Bars indicator is the methods that is used to calculate the Relative Strength Index (RSI).

At first step, we calculate the Relative Strength (RS). Then RS is calculated from the sum of the difference in prices over the period where that difference is positive (CU). Similarly, the sum of the difference in prices over the period where that difference is negative (CD) is calculated expressed as a positive number.

RSI is calculated as 100 - 100 / (1 + CU/CD). The indicator comprises of two colors- LIGHTGREEN and RED.

Light Green: When RSI(i) is more then 70 and more then 40
Red: When RSI(i) is less then 30 and less then 60

Trading Signals: 
Buy: Place Buy position at close of candle when indicator color is Light Green. Place stop loss below nearest swing low. Exit position if indicator color turns RED, or alternatively keep a tight stop loss. 

Sell: Place Sell position at close of candle when indicator color is RED. Place stop loss above nearest swing high. Exit position if indicator color turns LIGHT GREEN, or alternatively keep a tight stop loss.

To use Trend Bars indicator download it from here, then place it at VertexFX VTL directory:
C:\ProgramData\VertexFX Client Terminals\"Company name"\VTL10\Local VTL Scripts
Then right click on the tree and select refresh or restart your client station and you will find under  VTL local scripts in your client terminal.

You can check this video that talks about Trend Bars indicator:




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