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Vertical Horizontal Filter (VHF)
Vertical Horizontal Filter (VHF) is indicator in technical analysis created for measuring trend activity. Indicator was developed by Adam White for identifying trending markets.
Vertical horizontal filter is calculated by formula:
- LC: lowest close in last n periods
For n parameter is usually used value of 28.
Vertical Horizontal Filter (VHF)
Interpretation
VHF indicator is used to determine if prices are trending: rising VHF indicates a trend and falling VHF indicates ranging market. The higher value of VHF is the trend is stronger.
Example
Open chart for google with VHF indicator.