Although the creator of the Relative Vigor Index is unknown, its design is very similar to Stochastics except that the closing price is compared with the Open rather than the Low price for the period. As a momentum indicator, the slope of the RVI often changes direction ahead of price. The next article in this series on the Relative Vigor Index indicator will discuss how this oscillator is used in forex trading and how to read the various graphical signals that are generated. A forex trading strategy designed to make maximum profits from a long-term uptrend can be created using the Relative Vigor Index , or RVI, in conjunction with other technical indicators. If the RSI indicates overbought conditions in the market by readings above 70, this is taken as a confirming signal of the RVI divergence indication. Fluctuations tend to be smoother such that divergences between the index and price behavior have more meaning.
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Ninjacators Smart RVI Indicator
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