All what you need to know about Relative vigor Index
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.
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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.
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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:
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