Relative volatility index
Not to be confused with the Relative Vigor Index above — this applies the RSI calculation to standard deviation instead of price changes, producing an RSI-style 0–100 volatility reading.
What the numbers mean
Two numbers: the standard-deviation window — 9 or 10 in Dorsey's original — and the RSI-style smoothing applied on top of it, conventionally 14. The result is a 0–100 line measuring the direction of volatility rather than the direction of price.
- 10 — the standard-deviation window (9 in some implementations)
- 14 — the RSI-style smoothing applied on top
- 50 — the midline; above it volatility is rising on balance
- 60 / 40 — Dorsey's thresholds for reading it on its own rather than as a filter
How it is used
Used as a confirming filter rather than a standalone signal — a price breakout accompanied by a rising RVI is treated as better supported than one occurring while volatility is drying up.
- Rising RVI alongside a breakout → the move has volatility behind it
- Falling RVI during a breakout → the move is running on fumes
- Used as a confirming filter rather than a standalone signal
How it relates to everything else
Donald Dorsey built this as a companion to momentum indicators rather than a replacement: RSI says how stretched price is, this says whether volatility supports the move. It shares an abbreviation with the Relative Vigor Index and measures something entirely different.
- RSI's formula applied to volatility
- Designed to confirm RSI and moving-average signals, not to replace them
- Inertia is this same index smoothed by a linear regression — both are Dorsey's
- Not the Relative Vigor Index, despite sharing “RVI”
What to watch for
It shares an abbreviation with the Relative Vigor Index and measures something completely different, which is a frequent source of confusion between platforms.