Video manual: How to Trade - Vertical Horizontal Filter indicator, and Free to Downloads

• Developed by Adam White and published in August 1991 in Futures Magazine
• Used for determining whether a market is trending or congested, or about to change from one to the other
• Useful within a technical trading system to determine which indicators are best-calibrated to the current market. In other words, VHF can help you determine whether you should use rangebound or trend-following trading indicators.

• Higher VHF = a higher degree of trend; in such scenarios, the implication is to use trend-following indicators.
• Lower VHF = lower degree of trend (use trading-range-friendly indicators like RSI or Stochastics)

• Rising VHF = developing trend
• Falling VHF = congesting market

Signals of market shift: congestion often follows high VHF values (as price peaks), trending prices often occur following low VHF (as price bottoms out)

FREE TO DOWNLOADS

• VHF (Vertical Horizontal Filter for Metatrader 4)
• VHF (Vertical Horizontal Filter for Metatrader 5)