Description

• VHF was developed by Adam White to identify price movement
• VHF values helps to understand whether price is trending or they are in trading range
• It can be used with other indicators to confirm stock movements

Interpretation

• Rising VHF value indicates that stocks are trending in either direction
• Falling VHF indicates that trend is weakening and stock is losing direction
• If VHF becomes very low, stock is very quite and a fresh trend may emerge

Default Parameters Used/Inputs

• Price Line
• Bars

Returns/Output

VHF values of stock for the specified period

Formula

VHF = Highest High – lowest Low / ∑ close – close-1