A Daily Swing Trade

Created by Adam White, the Vertical Horizon Filter illustrates the trendiness of a particular equity. It helps display whether the stock is following a trend or a trading range.

If the Vertical Horizon Filter is rising, this may indicate a trend is forming. The higher the indicator, the better other trend-following indicators will work. Falling values may indicate that prices may be falling out of the trend and entering a congestion phase (the stock trades within a certain price range without much net up or down movement).