Vertical horizontal filter

The vertical horizontal filter

The vertical horizontal filter over 28 bars is 0.55, above 0.53, the level a pure random walk stays under on 19 bars in 20: the closes have gone one way more than chance usually gives, a trending stretch.

The direction

It was 0.53 on the bar before, so it is rising. A rising VHF says the moves are lining up in one direction; a falling one says they are cancelling out.

The parts

Over the last 29 closes the highest minus the lowest is 184.30, and the bar-to-bar moves add up to 332.60 in size.

The last bars

In the last 20 readings compared, 1 was above 0.53 and 1 at or below 0.31. A pure random walk would put about 1 in 20 above the first line and about half at or below the second.

Read it with care

The two lines come from a simulated random walk with the same look-back, not from your market. The VHF says whether the closes have been trending or ranging, not which way they will go next.

The close, the highest minus the lowest close over the look-back, and the 28-bar VHF on the last bars. The last bar is marked.

Education only, not investment advice. The answer comes from the numbers you typed in, not from your account or the market. Simulated results are hypothetical and have limits: real trading has slippage, gaps, changing results and emotions. Trading leveraged products can lose money quickly, including all of it. Risk warning