Vortex Indicator

The Vortex Indicator was developed as a new directional movement indicator. It is very similar to the directional movement indicator that originated from J. Welles Wilder.

The calculation of the index involves 8 steps.

1. Compute +VM = ABS(Today’s High – Yesterday’s Low)

2. Compute –VM = ABS(Today’s Low – Yesterday’s High)

3. Compute True Range

4. Compute A = sum of +VM for the past N days

5. Compute B = sum of –VM for the past N days

6. Compute C = sum of True Range for the past N days

7. +Vortex = A/C

8. –Vortex = B/C

The way to interpret the vortex indicator is similar to +DI and –DI indicators. When +Vortex is above –Vortex, the trend is bullish and when the reverse occurs, the trend is bearish.

Taking Wing Tai Holdings as an example, you can see clearly how the Vortex indicator captured the up swing and down swing respectively.

For more information on Vortex indicator, please refer to Technical Analysis Of Stocks & Commodities Magazine.

STI Statistics For Mar

Dow managed to close at 10,566 points on Friday, moving up 122 points. Nonfarm payroll for February came out better than expected. 36,000 jobs were lost compared to an expected decline of 68,000.

In Singapore, the STI index managed to close on higher grounds on Friday as well with the index closing at 2790.

The performance of STI in Mar is slightly favorable to the Bulls. Going with trading data from 1998 to 2009, there were 13 winners in the month of Mar versus 9 losing “Mar” months. In terms of percentage, the biggest gain of 7.42% was attained in 1999 whereas the biggest loss of 13.89% was established in 2001.

Entry Date	Entry Price	Exit Date	Exit Price	% Change
1-Mar-88	890.3	5-Apr-88	926.8	4.1
1-Mar-89	1105.80	3-Apr-89	1187.30	7.37
1-Mar-90	1546.10	2-Apr-90	1549.20	0.2
1-Mar-91	1463.00	2-Apr-91	1480.50	1.2
2-Mar-92	1460.50	1-Apr-92	1394.10	-4.55
1-Mar-93	1665.30	1-Apr-93	1668.60	0.2
1-Mar-94	2342.70	4-Apr-94	2080.90	-11.18
1-Mar-95	2126.70	3-Apr-95	2093.10	-1.58
1-Mar-96	2438.50	1-Apr-96	2387.30	-2.1
3-Mar-97	2195.70	1-Apr-97	2072.50	-5.61
2-Mar-98	1616.00	1-Apr-98	1629.50	0.84
1-Mar-99	1414.56	1-Apr-99	1519.58	7.42
1-Mar-00	2129.17	3-Apr-00	2135.76	0.31
1-Mar-01	1935.75	2-Apr-01	1666.90	-13.89
1-Mar-02	1716.96	1-Apr-02	1806.62	5.22
3-Mar-03	1278.35	1-Apr-03	1260.03	-1.43
1-Mar-04	1898.09	1-Apr-04	1856.80	-2.18
1-Mar-05	2120.94	1-Apr-05	2141.38	0.96
1-Mar-06	2472.03	3-Apr-06	2542.77	2.86
1-Mar-07	3133.88	2-Apr-07	3240.07	3.39
3-Mar-08	3026.45	1-Apr-08	3007.36	-0.63
2-Mar-09	1594.87	1-Apr-09	1699.99	6.59
1-Mar-10	2750.86	Open	Open	1.43