Relative Vigor Index
The Relative Vigor Index (RVI) indicator measures the relative strength of trends in bull and bear markets. It is based on the following concepts:
- Closing prices in bull markets are generally higher than opening prices
- A bull market is vigorous when the closing price is near to the high price
- Opening prices in bear markets are generally higher than closing prices
- A bear market is vigorous when the closing price is near to the low price
The RVI ranges from 1 to -1; 1 is the most vigorous bull market and -1 is the most vigorous bear market. Two lines are usually plotted:
- The first one is the simple moving average over 10 intervals
- The second is a 4 period symmetrically weighted moving average – this is a signal line
Buy or sell signals occur when the lines cross:
Calculation
RVI( J ) = ( CLOSE( J ) – OPEN( J ) ) / ( HIGH( J )– LOW( J ))
J is the current interval
You can find more information about technical indicators in the MetaTrader 4 User Guide. Select Help > Help Topics > Analytics > Technical Indicators.
