Description:
The Relative Vigor Index (RVI) is a technical indicator used to identify the direction of an asset’s momentum and measure its strength. Although the creator of the Relative Vigor Index is unknown, its design is very similar to stochastics, except the closing price is compared to the open instead of the low for the period.
Input Parameters:
- Length: Number of periods used in the calculation.
Use Case:
- Trend Identification: An RVI reading above 50 typically indicates buyers are taking control of new trends and pushing higher prices. In contrast, readings below 50 suggest sellers may be dominating market activity and driving prices lower. An upward-sloping curve indicates an uptrend – as closing prices consistently surpass opening prices – while a downward-sloping curve indicates a downtrend – as closing prices consistently fall short of opening prices.
- Buying/Selling Pressure: When there is more buying pressure compared to selling pressure, the indicator will move upwards and register higher values; conversely, when there is more selling pressure compared to buying pressure, the indicator will move downwards and register lower values.
- Divergences: A divergence between the RVI line and price movements can signal whether momentum is likely to continue or reverse course shortly after that.
This feature can be used in:
- Market Scanner
- Strategy Tester
- Multi-Factor Alerts
- Smart Checklist
Do you want to learn more? Check out our Learning Center Article.