Purpose of the RVI
The Relative Vigor Index (RVI) is based on the idea that prices tend to close higher than they open in uptrends, and lower in downtrends. It compares the close-minus-open of each candle with its full range and smooths the result. It has a Main line and a Signal line.
How It Works
When you select Relative Vigor Index (RVI) in the Trade Rule block, you can configure it with the following settings:
Period of RVI
The number of candles used for the calculation (standard: 10).
Mode of RVI (Which line to use)
Main Line: The RVI line.
Signal Line: A smoothed version of the main line.
Time Frame of RVI
Sets the chart time frame for the RVI calculation.
Can be replaced with a variable or input for quick testing and optimization.
Candle ID of RVI
Defines which candle the calculation starts from.
0: Current candle (still forming).
1: Most recently closed candle.
Higher IDs refer to older candles.
Adjust of RVI (Modify the Result)
Apply an adjustment to the calculated value by adding, subtracting, multiplying, or dividing by a number.
Example
If you set:
Period: 10
Mode: Main Line
Candle ID: 1
You get the RVI main line value of the most recently closed candle. A value above 0 suggests closes are higher than opens.
Use Cases
Compare the Main Line with the Signal Line (Main > Signal is bullish).
Use the zero line to judge whether buyers or sellers dominate.
Spot divergence between price and the RVI.
⚠ Tip: The RVI gives many signals on low time frames. Use higher time frames or combine it with a trend filter.
⚠ Note: When you use Crosses Above or Crosses Below with this indicator, the cross is currently calculated on its first line, whatever Mode you select. To compare two specific lines, use > or < instead.