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Reversion Docs

VI Overview

The Vortex Indicator (VI) identifies trend direction by measuring two oscillating lines: VI+ (positive vortex) and VI- (negative vortex). VI+ measures upward price movement relative to true range, while VI- measures downward movement. When VI+ crosses above VI-, bullish trend is dominant, and vice versa.

The Vortex Indicator was inspired by water flow dynamics — the concept of positive and negative vortex movements in nature applied to price action.

How Vortex Indicator Works

Section titled “How Vortex Indicator Works”

Core Concept

Section titled “Core Concept”
  1. Calculate VI value from the input price/volume data
  2. Apply smoothing if applicable
  3. Compare to threshold or signal line for signal generation
  4. Interpret: Signals indicate momentum direction or extremes

Key Characteristics:

  • Momentum Indicator = Measures momentum direction and strength
  • Signal Line Available = Threshold-based signals only
  • Bounded = Yes (0 – 1+ (typically near 1.0))

Visual Interpretation

Section titled “Visual Interpretation”

VI Behavior:

  • Bullish trend — upward movement dominant
  • Bearish trend — downward movement dominant

Trading Signals Available on Reversion

Section titled “Trading Signals Available on Reversion”

These are the signal names you select when configuring VI in the algorithm builder or via the MCP agent:

SignalTriggers WhenTypical Use
viPlus_above_viMinusVI+ exceeds VI- (upward vortex dominates)Bullish trend — upward movement dominant
viPlus_below_viMinusVI- exceeds VI+ (downward vortex dominates)Bearish trend — downward movement dominant

Display: Separate pane

Category: Momentum

Threshold range: 0 – 1+ (typically near 1.0)

Key Characteristics

Section titled “Key Characteristics”

What Vortex Indicator Does Well:

  • Clear Directional Signals
  • Combines well with trend filters
  • Threshold-based signals for entry timing