Introduction to Vertical Horizontal Filter
The Vertical Horizontal Filter (VHF) is used to identify trending and ranging markets.  VHF finds out whether a trend is really in place or in a non-trending congestion phase.  The rising VHF suggests a trend is developing, while falling VHF shows the congestion phase. The higher the VHF, the higher the degree of trending. To work out the VHF, determine the highest closing price and the lowest closing price over the specified time period. The Vertical Horizontal Filter can be very useful in helping a trader decide which other indicators to place the most weight on. Technical analysts of Money Classic Research resort to VHF technique to derive accurate trading tips. The firm also provides intraday Cash & Option tips, Stock future tips and other trading recommendations for clients.
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