RVI MetaTrader 4 Indicator & Relative Vigor Index Signals

Developed by John Ehlers

The Relative Vigor Index combines the older concepts of MetaTrader 4 Indicator with modern digital signal processing theories and filters to create a practical & useful indicator.

The basic principle behind it's simple -

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

The momentum (vigor) of the move will therefore established by where the prices end up at the close of the candle. The Relative Vigor Index plots 2 lines the RVI Line and the signal Line.

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

This makes the index a responsive MetaTrader 4 Indicator that has quick turning points that are in phase with the market cycles of prices.

MetaTrader 4 Indicator & Generating Signals

The Relative Vigor Index is an MetaTrader 4 Indicator. The basic method of interpreting the index is to use the crossovers of the RVI and the Signal Line. Signals are generated when the there is a crossover of the two lines.

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

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

Buy and sell signals generated using the cross over technique