Relative Vigor IndexThe main point of Relative Vigor Index Technical Indicator (RVI) is that on the bull market the closing price is, as a rule, higher, than the opening price. It is the other way round on the bear market. So the idea behind Relative Vigor Index is that the vigor, or energy, of the move is thus established by where the prices end up at the close. To normalize the index to the daily trading range, divide the change of price by the maximum range of prices for the day. To make a more smooth calculation, one uses Simple Moving Average. 10 is considered the best period. To avoid probable ambiguity one needs to construct a signal line, which is a 4period symmetrically weighted moving average of Relative Vigor Index values. The concurrence of lines serves as a signal to buy or to sell.
CalculationRVI is calculated similarly to Stochastic Oscillator. However, the Vigor Index compares close levels relative to opening levels, and not the minimal price as is done by Stochastic. The indicator is calculated as the value equal to the actual price change for the period, normalized to the maximal range of price change for this period, for example a day or hour. RVI = (CLOSE  OPEN) / (HIGH  LOW) Where: OPEN — opening price; Usually RVI is displayed as two lines: 1. The first one is build the same as RVI, but instead of Close and Open price difference and High and Low price difference sums of 4period symmetrically weighted moving averages are used. I.e. the 4period symmetrically weighted average of a numerator is calculated: MovAverage = (CLOSEOPEN) + 2 * (CLOSE1  OPEN1) + 2 * (CLOSE2  OPEN2) + (CLOSE3  OPEN3) Where: CLOSE — current close price; Then the 4period symmetrically weighted moving average of a denominator is found: RangeAverage = (HIGHLOW) + 2 x (HIGH1  LOW1) + 2 x (HIGH2  LOW2) + (HIGH3  LOW3), Where: HIGH — maximal price of the last bar; After that we calculate the sum of these moving averages for the last 4 periods, for example hours or days: 2. The second line is the 4period symmetrically weighted moving average of the first line: RVIsignal = (RVIaverage + 2 * RVIaverage1 + 2 * RVIaverage2 + RVIaverage3)/6

MetaTrader 5 — a complex trading platform for providing brokerage services on the retail Forex market.
Copyright 20002015, MetaQuotes Software Corp.