Relative Vigor Index, RVI

The best period at calculation of the indicator is considered 10. To avoid probable ambiguity one needs to construct a signal line, which is a symmetrically weighted moving averageof Relative Vigor Index values. The concurrence of lines serves as a signal to buy or to sell.

Calculation
    VALUE1 = ((CLOSE - OPEN) + 2 * (CLOSE (1)) – OPEN (1)) + 2*(CLOSE (2) – OPEN (2)) + (CLOSE (3) – OPEN (3))) / 6

VALUE2 = ((HIGH - LOW) + 2 * (HIGH (1) – LOW (1)) + 2*(HIGH (2)- LOW (2)) + (HIGH (3) – LOW (3))) / 6

NUM = SUM (VALUE1, N)

DENUM = SUM (VALUE2, N)

RVI = NUM / DENUM

RVISig = (RVI + 2 * RVI (1) + 2 * RVI (2) + RVI (3)) / 6

    where:
OPEN  — is the opening price;
HIGH  — is the maximum price;
LOW  — is the minimum price;
CLOSE  — is the closing price;
VALUE1 — symmetrically weighted moving average of the differences of the closing and openings prices;
VALUE2 — symmetrically weighted moving average of the differences of the maximum and minimum prices;
NUM — amount N importances of VALUE1;
DENUM —amount N importances of VALUE2;
RVI — value of the Relative Vigor Index indicator for the current bar;
RVISig — value of the RVI signal line for the current bar;
N — period of the smoothing.

Technical Indicator Description

Full description of Relative Vigor Index is available in the Technical analysis: Relative Vigor Index