The January 2010 issue of
Technical Analysis of Stocks & Commodities carried an article describing a new indicator for gauging major changes in market direction,
The Vortex Indicator. It is a refinement of
J. Welles Wilder's Direction Movement Index, introduced in his classic 1978 treatise,
New Concepts in Technical Trading Systems. My review of
The Vortex Indicator is showing some promise, especially in longer-term trend analysis.
Below is a
Monthly chart of NNVC, updated with today's prices and
The Vortex Indicator (lower panel):
NNVC Monthly with Vortex Indicator
Note the cross-over in the indicator, suggesting a major bullish trend change. Here is a Weekly version of the same chart:
Again, note the bullish Vortex cross-over
Finally, a Daily look at NNVC and Vortex:
NNVC Daily with Vortex Indicator
A
