All what you need to know about Relative vigor Index

[TheFxTrader]

The purpose of RVI:
The creator of the relative activity index is John Aylerz and devised to determine the direction of the prevailing trend. The cursor movement based on a very simple idea and is that the price of closing mostly higher than the opening price in the growing wasq and lower than in the bearish market.

Use it
The relative activity index reflects the acceleration or deceleration movement of price change (and in turn, it may be used to determine the pattern of divergence / convergence):
In general, the more the value of the index higher, the more the price rises more pronounced;
And whenever the lowest index value, the more the low price more obvious.
In conjunction with the signal line (in red), which is a moving average line for four periods and the relative activity (in green) is a convenient tool to identify potential points to break the dynamics prevailing price:
Cross the signal line from top to bottom, the index gives a signal to sell;
Crossed the signal line from the bottom up, the index gives a signal to buy.

Account

The relative activity index (1) = (closing - opening) / (maximum - minimum limit)
The relative activity index (10) = period decimal Almitrg simple average of the index relative activity (1)

Some exemples: