Trade Bitcoin Trading

RVI Bitcoin Analysis & Relative Vigor Index Signals

Created by John Ehler

The Relative Vigor Index combines the older concepts of analysis with modernized digital trade signal processing theories & filters to come up with a practical & useful technical indicator.

The basic principle behind it's simple -

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

The force (vigor) of the move will therefore established by where the bitcoin prices end up at the close of the candlestick. The Relative Vigor Index plots two lines the RVI Line and the trading signal Line.

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

Relative Vigor Index Bitcoin Indicator - Relative Vigor Index Crypto Indicator

This characteristic renders the index a highly responsive oscillator, possessing rapid turning points that align synchronously with the cyclical fluctuations of bitcoin prices (btcusd market cycles).

BTCUSD Analysis and Generating Signals

The Relative Vigor Index is an oscillator. The basic idea is to watch for crossovers between the RVI and its signal line. You get your trading signals when those two lines cross.

Bullish Signals - a buy cryptocurrency signal occurs when the RVI crosses above the SignalLine.

Bearish Signals - A sell signal for cryptocurrency is generated the moment the RVI crosses beneath its corresponding Signal-line.

Ehlers Relative Vigor Index Bitcoin Indicator - Relative Vigor Index BTCUSD Indicator

Buy & sell signals generated using the cross-over method

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