Relative Vigor Index (RV I)
This tool for MetaTrader 5 is specifically engineered to streamline your trading operations. This technical indicator acts as a specialized analysis tool designed to visualize market data. It helps traders identify emerging trends, momentum shifts, and key support or resistance levels by plotting statistical calculations directly onto price charts.
How to Setup and Use Relative Vigor Index (RV I)
1. Installation: Place your file in the MQL/Indicators folder via "Open Data Folder" and restart your terminal.
2. Loading: Find the indicator in the Navigator, drag it onto your chart, and configure the input parameters in the popup window.
3. Customization: Press Ctrl+I to open the indicator list, select your tool, and click "Properties" to change colors, levels, or visual styles.
4. Updating: Replace the old file in the Indicators folder with the new version and restart the platform to apply changes.
Frequently Asked Questions
Q: Why is my indicator not showing? A: Verify the file is in the MQL/Indicators folder, or try right-clicking the "Indicators" tree in the Navigator and clicking "Refresh."
Q: Do custom indicators slow down the platform? A: Too many complex indicators can impact performance; remove unused ones via the "Indicator List" (Ctrl+I).
Q: Can I use MT4 indicators on MT5? A: No, MQL4 and MQL5 are distinct languages; ensure the indicator is compiled specifically for your platform version.
Description & Settings
The main point of Relative Vigor Index (RVI) technical indicator is that on the bull market the closing price is, as a rule, higher, than the opening price.
It is the other way round on the bear market. So the idea behind Relative Vigor Index is that the vigor, or energy, of the move is thus established by where the prices end up at the close.
To normalize the index to the daily trading range, divide the change of price by the maximum range of prices for the day. To make a more smooth calculation, one uses Simple Moving Average. 10 is considered the best period. To avoid probable ambiguity one needs to construct a signal line, which is a 4-period symmetrically weighted moving average of Relative Vigor Index values. The concurrence of lines serves as a signal to buy or to sell.
Relative Vigor Index indicator
Calculation:
RVI is calculated similarly to Stochastic Oscillator.
However, the Vigor Index compares close levels relative to opening levels, and not the minimal price as is done by Stochastic. The indicator is calculated as the value equal to the actual price change for the period, normalized to the maximal range of price change for this period, for example a day or hour.
RVI = (CLOSE - OPEN) / (HIGH - LOW)
where:
OPEN - opening price;HIGH - highest price;LOW - lowest price;CLOSE - closing price.
Usually RVI is displayed as two lines:
1. The first one is build the same as RVI, but instead of Close and Open price difference and High and Low price difference sums of 4-period symmetrically weighted moving averages are used. I.e. the 4-period symmetrically weighted average of a numerator is calculated:
MovAverage = (CLOSE-OPEN) + 2 * (CLOSE-1 - OPEN-1) + 2 * (CLOSE-2 - OPEN-2) + (CLOSE-3 - OPEN-3)
where:
CLOSE - current close price;
CLOSE-1, CLOSE-2, CLOSE-3 - close prices 1, 2 and 3 periods ago;
OPEN - current open price;
OPEN-1, OPEN-2, OPEN-3 - open prices 1, 2 and 3 periods ago.
Then the 4-period symmetrically weighted moving average of a denominator is found:
RangeAverage = (HIGH-LOW) + 2 x (HIGH-1 - LOW-1) + 2 x (HIGH-2 - LOW-2) + (HIGH-3 - LOW-3),
where:
HIGH - maximal price of the last bar;
HIGH, HIGH-2, HIGH-3 - maximal prices 1, 2 and 3 periods ago;
LOW - minimal price of the last bar;
LOW-1, LOW-2, LOW-3 - minimal prices 1, 2 and 3 periods ago.
After that we calculate the sum of these moving averages for tha last 4 periods, for example hours or days:
2. The second line is the 4-period symmetrically weighted moving average of the first line:
RVIsignal = (RVIaverage + 2 * RVIaverage-1 + 2 * RVIaverage-2 + RVIaverage-3)/6
