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.
//Vortex indicator with defined thresholds created by Rashad study(title = "Vortex Indicator With Thresholds defined", shorttitle="VI") period_ = input(7, title="Period", minval=1) VMP = sum( abs( high - low), period_ ) VMM = sum( abs( low - high), period_ ) STR = sum( atr(1), period_ ) VIP = VMP / STR VIM = VMM / STR plot( VIP, title="VI +", color=fuchsia, linewidth=2) plot( VIM, title="VI -", color=aqua, linewidth=2) bandy1 = hline(1, color=gray, linestyle=dashed) bandy2 = hline(0.9, color=orange, linestyle=dashed) bandy3 = hline(1.1, color=orange, linestyle=dashed) bandy4 = hline(1.3, color=red, linestyle=dashed) bandy5 = hline(0.7, color=red, linestyle =dashed)
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.