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Technical Studies Reference


Vertical Horizontal Filter

The Vertical Horizontal Filter determines whether prices are in a trending phase or a congestion phase. Reference: August 1991 issue of Futures magazine, Adam White.

Let \(X\) be a random variable denoting the Input Data Input, and let \(X_t\) be the value of the Input Data at Index \(t\). Let the Length Input be denoted as \(n\).

The Vertical Horizontal Filter is denoted as \(VHF_t(X,n)\), and we compute it for \(t \geq n\) as follows.

\(\displaystyle{VHF_t(X,n) = \frac{\max_t(X,n) - \min_t(X,n)}{\mathrm{sum}_t(X,n)}}\)

In the above formula, the functions \(\max\), \(\min\), and \(\mathrm{sum}\) are the Moving Maximum, Moving Minimum, and Moving Summation, respectively.

Inputs

Spreadsheet

The spreadsheet below contains the formulas for this study in Spreadsheet format. Save this Spreadsheet to the Data Files Folder.

Open it through File >> Open Spreadsheet.

Vertical_Horizontal_Filter.31.scss


*Last modified Monday, 03rd October, 2022.