From 71580fc6ae8a0c2d483a243045507107985f45bc Mon Sep 17 00:00:00 2001 From: Toh4iem9 Date: Sat, 14 Feb 2026 10:13:23 +0100 Subject: [PATCH] new files added --- Indicators/MyIndicators/Quant/VHF_Pro.md | 47 ++++++++++++++++++++++++ 1 file changed, 47 insertions(+) create mode 100644 Indicators/MyIndicators/Quant/VHF_Pro.md diff --git a/Indicators/MyIndicators/Quant/VHF_Pro.md b/Indicators/MyIndicators/Quant/VHF_Pro.md new file mode 100644 index 0000000..1f31f01 --- /dev/null +++ b/Indicators/MyIndicators/Quant/VHF_Pro.md @@ -0,0 +1,47 @@ +# Vertical Horizontal Filter Pro (Indicator) + +## 1. Summary + +**VHF Pro** is a trend-intensity indicator originally developed by Adam White (1991). It answers a single, critical question: **"Is the market Trending or Ranging?"** + +Unlike moving average-based filters, VHF measures the "efficiency" of price movement by comparing the distance the price has traveled (Range) against the effort it took to get there (Path Length). + +## 2. Methodology & Calculation Modes + +The indicator determines the trend intensity (0.0 to 1.0) using the formula: +$$VHF = \frac{\text{Numerator (Range)}}{\text{Denominator (Path Length)}}$$ + +We have upgraded the classic algorithm with two selectable modes: + +### Mode A: Classic (Close-Only) + +* **Numerator:** `Highest(Close, N) - Lowest(Close, N)` +* **Logic:** Focuses purely on the closing consensus. Ignores intraday volatility and spikes. +* **Best for:** Smoother filtering on noisy timeframes. + +### Mode B: Professional (High-Low) + +* **Numerator:** `Highest(High, N) - Lowest(Low, N)` +* **Logic:** Accounts for the **entire trading range**, including wicks and failed breakouts. +* **Best for:** Accurate detection of trading ranges and volatility breakouts. This mode is more sensitive to market extremes. + +**Denominator (Noise):** The sum of absolute price changes from bar to bar (the total "distance walked"). This remains consistent across both modes. + +## 3. Interpretation + +* **VHF < 0.30 (Gray Zone):** **Congestion Phase.** The market is range-bound. Trend strategies (MA Cross) will fail. Use Oscillator/Mean Reversion strategies. +* **VHF > 0.30 (Blue Zone):** **Emerging Trend.** A directional move is gaining structure. +* **VHF > 0.40 (Gold Zone):** **Established Trend.** The movement is highly efficient. This is the "Sweet Spot" for trend-following entries. +* **Rising VHF:** The trend is strengthening. +* **Falling VHF:** The trend is weakening or the market is entering a consolidation phase. + +## 4. Parameters + +* `InpPeriod`: The lookback window (Default: `28`). +* `InpMode`: Calculation method (`VHF_MODE_CLOSE_ONLY` vs `VHF_MODE_HIGH_LOW`). +* `InpPrice`: The price source for the Close-based components (Default: `PRICE_CLOSE`). + +## 5. Strategic Usage + +* **Filter Logic:** Before entering a trade, check the VHF. If it is Gray (<0.3), **do not trade breakouts.** Wait for the VHF to turn Blue/Gold. +* **Exit Logic:** If you are in a trend trade and VHF peaks and starts falling sharply, consider tightening stops, as the trend is likely transitioning into a range.