Relative Vigor Index RVI Indicator is basically a technical indicator that work on comparison between that the trade price and the given assets its mechanism is not different from other oscillator indicators. It works on about zero value line, higher vales indicate oversold signals and lower values indicate overbought signals.
Relative Vigor Index RVI Indicator for MT4
It is show under the market graph in the form of rising and falling irregularly curve and Its propensity is to that the price will close higher lower respectively to upward trend and downward trend. Private divergence indicate change in trend. RVI is similar to Stochastic Oscillator in terms of calculations
Formula of RVI MT4:
RVI=SMA of DENOMINATOR for N periods/SMA of NUMERATOR for N periods
Or RVI = (CLOSE – OPEN) / (HIGH – LOW)
Characteristics of RVI indicator for MT4.
- Platform are: MT4, MT5
- Use fluctuating curves.
- Use two different colour lines (Green and Red)
- Timeframe: short term few minutes, few hours
- Work for any pair of currency. (EUR/USD, GBP/USD, USD/JPY, USD/CAD, AUD/USD, NZD/USD, EUR/GBP, GBP/JPY, EUR/JPY, AUD/JPY, XAU/USD)
Trading Signals of RVI MT4:
Divergence: The change in RVI Green line and Trend Red line indicates that a new trend is about to start and thy work inversely if one rise other declined.
Bullish: crossover above RVI curve indicate an upward trend or bullish trend and these trends indicate future direction-based on price range.
Bearish: crossover below RVI curve indicate a downward trend or bearish trend and these trends indicate future direction based on price input.
- Green Line
The green line Is adjustable Relative Vigor Index RVI Indicator line
- Red line
The adjustable red is trend line. This line provides trading signal and move along green line upside or downside.
Demerits of RVI for MT4:
RVI is considered as best indicator but when it comes to time it its answer is confusing.
Considering its drawbacks combining it with another indicator is necessary to reduce risk and this will inject effectiveness in trade. False signals can occur regardless o mostly signals are true and valid it depends on time.
5 trading strategy using RVI:
1. Relative Vigor Index and Two Moving Averages
2. Relative Vigor Index and the Moving Average Convergence Divergence (MACD)
3. Relative Vigor Index and Bollinger Bands
4. Relative Vigor Index and the Stochastic Oscillator
5. Relative Vigor Index and the Relative Strength Index (RSI)
Merits of RVI for MT4:
RVI is one of the best indicators and most used indicator. RVI works very well with every pair and new traders with zero knowledge love to use it. Helps to find support and resistance level. Indicate Overbought and Oversold levels. Its main feature is to identify high/low and opening/closing.
This indicator collect data to predict end timeframe price this is market base point. RVI indicate when to trade and when to stop. High values are interpreted as a strong overbought condition of an assets and selling signal, vice versa low values indicate a strong oversold condition of a assets and buying signal.
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