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RVI Technical Analysis & Relative Vigor Index Signals

Created and Developed by John Ehler

The RVI combines the older concepts of technical analysis with modernized digital trading signal processing theories & filters to create a practical & useful technical indicator.

The basic principle behind it's simple -

  • Prices tend to close higher than where they open in up-trending markets and
  • Prices close lower than where they open in down-trending markets.

The force (vigor) of the move will hence established by where the prices end up at the close of the candlestick. The RVI plots 2 lines the RVI Line & the signal Line.

The RVI index is essentially based on measuring of the average difference between the closing & opening price, & this value then is averaged to the mean average daily range & then plotted.

Ehlers Relative Vigor Index, RVI Indicator Analysis - Indicators MT4 Relative Vigor Index

This makes the index a responsive oscillator technical indicator that has quick turning points which are in phase with the market cycles of prices.

Technical Analysis and How to Generate Trading Signals

The RVI is an oscillator indicator. The basic technique of interpreting the index is to use the cross-overs of the RVI and the SignalLine. The Signals are derived & generated when there is a cross over of the 2 lines.

Bullish Signals - a buy signal happens when the RVI crosses above the Signal-Line.

Bearish Signals - a sell trade signal happens when the RVI crosses below the Signal-Line.

How Can You Analyze Ehler Relative Vigor Index Indicator? - No Nonsense Forex RVI Buy & Sell Trading Signals Indicator

Buy & sell signals derived/generated using the crossover trading strategy

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