Force of vigor4/17/2023 ![]() ![]() How to Use the Relative Vigor Index (RVI)įinding the open and closing prices for currencies is usually relatively difficult because the forex market is usually open 24 hours for five days. You can change the period to suit your trading strategy. The default period in most platforms is 10 while the default colors are red and green. All you need to do is to enter the period and change the colours. There are not many settings for the RVI indicator. As you may have noted, this is a process similar to how the stochastics oscillator is calculated. Finally, d ivide the numerator from the denominator. You should then calculate the simple moving averages for the numerator and denominator for the period. Still, you can tweak this period to suit your trading strategy.Īfter this, you need to identify the Open, High, Low, and Close values for the current bar. Then, identify the same levels for the lookback period. The default period in most platforms is usually 10. ![]() The first step for calculating the RVI is to identify the period to examine. Still, it can be used well in the other markets such as forex, stocks, and indices. Instead, it is recommended that you know the meaning of the indicator and how to use it when trading.Īs with most indicators, the RVI was created with the commodities market in mind. This should not scare you because you are not requited to do the calculations yourself. The process of calculating the relative vigor index is relatively complex compared to other indicators. → How to master Technical Analysis How to calculate the RVI The other period is when the RVI and signal lines cross one another. There is when the two lines cross the neutral line. Overbought levels are used to signal opportunities to short or sell while oversold levels are used to signal opportunities to buy.Īs with all indicators with such lines, there are two main sections that traders watch. Traders use the indicator to identify when the price of an asset is oversold or overbought. The chart below shows the RVI on the EUR/USD chart. Still, you can add the neutral line using the horizontal line. The green line is the RVI line while the red line is the signal. Some popular trading platforms like TradingView show the indicator as two lines.
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