Indicator Relative Vigor Index

Indicator Relative Vigor Index (Relative vivacity Index) developed one of the best specialists in the use of cycles in technical analysis - Jon Eilers. The idea was the starting point for the creation of this indicator suggests an understanding that the growing market closing price is always higher than the opening level, the falling - respectively, below. And the index of relative cheerfulness measures the level of confidence of current price movements, as well as the likelihood of continuation.


Using the RSI, the trader can obtain important information. Relative Vigor Index compares the location of the closing prices of the currency pair and the range of prices, smooths out the final result of the calculation of the 10-period moving average, which, in turn, displays the average value of the asset balance assessment of currency market participants for a particular time period.
This forex indicator in the terminal is represented by two lines - one "fast", which is the energy market movement, reflecting the balance of traders for a small time period; the second - the signal provided by the 4-period moving average of the RVI, which is used to reduce the uncertainty of the indicator signals.
Signal curve shows the balance for the larger time intervals. The relative position of the two lines gives the opportunity to make assumptions about future changes in prices. Most often traders use this tool not in isolation but in conjunction with others, preferring a strategy to RVI display.
Indicator Relative Vigor Index



Viewed Metatrader 4 indicator is calculated as follows: RSI = (CLOSE-OPEN) / (HIGH - LOW). There OPEN displays the opening price, HIGH indicates the maximum value and the LOW represents the minimum cost, CLOSE - closing value of the cost. LED indicator comes in many Forex strategies.
This oscillator, as a rule, is in phase with the cycle of market prices, therefore provides a fairly accurate predictions within a trading range. The main feature of the emergence of opportunities for the conclusion of a successful transaction - mutual intersection of RVI line with the signal line.
When the fast line crosses the signal from the bottom up, a trader can open a buy order. It is desirable to put a stop loss just below the last local minimum. When the RVI crosses the line from top to bottom 4-period moving average, Stavan can be in a position downstream. In this case, put the stop loss above the last local maximum, which was noted.
Using Relative Vigor Index indicator in the work, the trader must remember that RVI growth is a sign of upward movement is gaining strength (actual and vice versa); about the weakness of the current trend is signaled by the "bear" convergence, "bullish" divergence. Unlike other oscillators, Relative Vigor Index oversold zone and indicator shows overbought, so their definitions traders use other indicators.