Relative vigor index
Compares the close-to-open change against the high-to-low range, on the idea that strong uptrends tend to close well above where they opened (and vice versa). Plotted against a signal line for crossovers.
What the numbers mean
Ten is the lookback over which the close-minus-open is compared to the high-minus-low, and 4 is the weighted average forming the signal line. The premise is that in a real uptrend markets close nearer the top of their bar than they opened.
- 10 — the lookback comparing close-minus-open to high-minus-low
- 4 — the weighted average forming the signal line
- The premise: in a real uptrend markets close nearer the top of their bar than they opened
How it is used
Used for signal-line crossovers and for divergence against price, most often in markets with a clear rhythm rather than in strong one-way trends.
- RVI crossing its signal line → the trigger
- Divergence against price → the more trusted reading
- Works best in markets with a clear rhythm rather than one-way trends
How it relates to everything else
RVI belongs with the candle-anatomy tools — it is essentially a running measure of where closes sit relative to opens, which is the same information a run of long-bodied candles conveys visually. That makes it weaker on instruments that gap or trade around the clock, where the open means less.
- Reads the same open-to-close relationship as candle bodies
- RVIMA is its signal line
- Often confused with the Relative Volatility Index, a different indicator entirely
What to watch for
It relies on the open, which makes it less meaningful for instruments that gap or trade around the clock. Alone it produces plenty of crossings that go nowhere.