What is the Relative Vigor Index (RVI)?
The Relative Vigor Index (RVI) is a technical analysis tool that traders use to identify potential buying and selling opportunities based on changes in market momentum. The RVI is a variation of the popular relative strength index (RSI) indicator, but instead of using price changes to measure momentum, it uses the closing price and the opening price of each period to calculate the RVI value. The RVI is displayed as a line on a separate window below the main price chart and ranges from 0 to 100.
How is it used by traders?
Traders typically use the RVI to identify potential buying and selling opportunities based on changes in market momentum. The RVI is a momentum oscillator, which means that it fluctuates above and below a centerline, with values above the centerline indicating bullish momentum and values below the centerline indicating bearish momentum. Traders can use the RVI to confirm the strength of a trend or to identify potential trend reversals. For example, if the RVI is above the centerline and rising, this may be an indication that the trend is gaining strength and may continue. On the other hand, if the RVI is below the centerline and falling, this may be an indication that the trend is losing momentum and may reverse.
How can I add the RVI to a chart in MT4 or MT5?
To add the RVI to a chart in MetaTrader 4 (MT4) or MetaTrader 5 (MT5), follow these steps:
- Open the chart for the currency pair, stock, or other instrument that you want to analyze.
- Click on the ”Insert” menu at the top of the chart and select ”Indicators” from the drop-down list.
- In the ”Indicators” window, scroll down until you find the ”Relative Vigor Index” and then double-click on it to add it to the chart.
- The RVI will appear on the chart as a line on a separate window below the main price chart.
- You can customize the appearance of the RVI by right-clicking on it and selecting ”Properties” from the context menu. This will open the ”Relative Vigor Index” properties window, where you can change the color, line style, and other settings for the indicator.
- Once you have customized the RVI to your liking, click ”OK” to apply the changes and close the properties window. The updated RVI will be displayed on the chart.
