This is from Metastock technical support:
We had submitted a Trader’s Tip for the Vortex Indicator but for some reason it was not included in the most recent issue of TASC. Here is the tip we submitted.
The article “The Vortex Indicator” introduces a new indicator and a suggested trading method. Both can be added to MetaStock with the formulas listed below.
I split the indicator into two separate formulas to make it easier to color them correctly. To enter these indicators into MetaStock:
In the Tools menu, select Indicator Builder.
Click New to open the Indicator Editor for a new indicator.
Type the name “Vortex +”.
Click in the larger window and paste or type in the formula.
tp:= Input("time periods",1,100,14);
Sum(Abs(H-Ref(L,-1)),tp)/
Sum(Max(H,Ref(C,-1))-Min(L,Ref(C,-1)),tp)
Click Ok to close the Indicator Editor.
Click New to open the Indicator Editor for a new indicator.
Type the name “Vortex -”.
Click in the larger window and paste or type in the formula.
tp:= Input("time periods",1,100,14);
Sum(Abs(L-Ref(H,-1)),tp)/
Sum(Max(H,Ref(C,-1))-Min(L,Ref(C,-1)),tp)
Click Ok to close the Indicator Editor.
Click Ok to close Indicator Builder
The system test and instructions for creating it in MetaStock are:
Select Tools > the Enhanced System Tester.
Click New
Enter a name, “Vortex System”
Select the Buy Order tab and enter the following formula.
tp:= 14;
vip:=Sum(Abs(H-Ref(L,-1)),tp)/
Sum(Max(H,Ref(C,-1))-Min(L,Ref(C,-1)),tp);
vim:=Sum(Abs(L-Ref(H,-1)),tp)/
Sum(Max(H,Ref(C,-1))-Min(L,Ref(C,-1)),tp);
bset:=cross(vip,vim);
cross(h,valuewhen(1,bset,h))
Set the Order Type to Stop
Select the Limit or Stop Price and enter the following formula:
tp:= 14;
vip:=Sum(Abs(H-Ref(L,-1)),tp)/
Sum(Max(H,Ref(C,-1))-Min(L,Ref(C,-1)),tp);
vim:=Sum(Abs(L-Ref(H,-1)),tp)/
Sum(Max(H,Ref(C,-1))-Min(L,Ref(C,-1)),tp);
bset:=cross(vip,vim);
valuewhen(1,bset,h)
Select the Sell Order tab and enter the following formula.
tp:= 14;
vip:=Sum(Abs(H-Ref(L,-1)),tp)/
Sum(Max(H,Ref(C,-1))-Min(L,Ref(C,-1)),tp);
vim:=Sum(Abs(L-Ref(H,-1)),tp)/
Sum(Max(H,Ref(C,-1))-Min(L,Ref(C,-1)),tp);
sset:=cross(vim,vip);
cross(valuewhen(1,sset,L),L)
Set the Order Type to Stop
Select the Limit or Stop Price and enter the following formula
tp:= 14;
vip:=Sum(Abs(H-Ref(L,-1)),tp)/
Sum(Max(H,Ref(C,-1))-Min(L,Ref(C,-1)),tp);
vim:=Sum(Abs(L-Ref(H,-1)),tp)/
Sum(Max(H,Ref(C,-1))-Min(L,Ref(C,-1)),tp);
sset:=cross(vim,vip);
valuewhen(1,sset,L)
Select the Sell Short Order tab and enter the following formula.
tp:= 14;
vip:=Sum(Abs(H-Ref(L,-1)),tp)/
Sum(Max(H,Ref(C,-1))-Min(L,Ref(C,-1)),tp);
vim:=Sum(Abs(L-Ref(H,-1)),tp)/
Sum(Max(H,Ref(C,-1))-Min(L,Ref(C,-1)),tp);
sset:=cross(vim,vip);
cross(valuewhen(1,sset,L),L)
Set the Order Type to Stop
Select the Limit or Stop Price and enter the following formula:
tp:= 14;
vip:=Sum(Abs(H-Ref(L,-1)),tp)/
Sum(Max(H,Ref(C,-1))-Min(L,Ref(C,-1)),tp);
vim:=Sum(Abs(L-Ref(H,-1)),tp)/
Sum(Max(H,Ref(C,-1))-Min(L,Ref(C,-1)),tp);
sset:=cross(vim,vip);
valuewhen(1,sset,L)
Select the Buy to Cover Order tab and enter the following formula.
tp:= 14;
vip:=Sum(Abs(H-Ref(L,-1)),tp)/
Sum(Max(H,Ref(C,-1))-Min(L,Ref(C,-1)),tp);
vim:=Sum(Abs(L-Ref(H,-1)),tp)/
Sum(Max(H,Ref(C,-1))-Min(L,Ref(C,-1)),tp);
bset:=cross(vip,vim);
cross(h,valuewhen(1,bset,h))
Set the Order Type to Stop
Select the Limit or Stop Price and enter the following formula
tp:= 14;
vip:=Sum(Abs(H-Ref(L,-1)),tp)/
Sum(Max(H,Ref(C,-1))-Min(L,Ref(C,-1)),tp);
vim:=Sum(Abs(L-Ref(H,-1)),tp)/
Sum(Max(H,Ref(C,-1))-Min(L,Ref(C,-1)),tp);
bset:=cross(vip,vim);
valuewhen(1,bset,h)
Click OK to close the system editor.
