Relative Vigor Index EA Setup - Setting Up Relative Vigor Index Expert Advisor

Relative Vigor Index EA Setup - Setting Up Relative Vigor Index EA - A trader can come up with an Relative Vigor Index EA based on the Relative Vigor Index indicator explained below.

Relative Vigor Index EA rules can be combined with other Forex trading indicators to come up with other Expert Advisor Forex Robots that trade using rules based on two or more indicators combined to form a trading system.

RVI Forex Trading Technical Analysis & Relative Vigor Index Signals

Developed by John Ehlers

The Relative Vigor Index combines the older concepts of technical analysis with modern digital signal processing theories & filters to create a practical and useful indicator.

The basic principle behind it is simple -

• Prices tend to close higher than they open in up-trending markets and
• Prices close lower than they open in down-trending markets.

The momentum (vigor) of the move will therefore established by where the prices end up at the close of the candle. The Relative Vigor Index plots 2 lines the RVI Line & the signal Line.

The RVI index is essentially based on measuring of the average difference between the closing and opening price, and this value is then averaged to the mean daily trading range and then plotted.

Relative Vigor Index EA Setup

This makes the index a responsive oscillator that has quick turning points which are in phase with the market cycles of prices.

Forex Trading Analysis and Generating Signals

The Relative Vigor Index is an oscillator. The basic method of interpreting the index is to use the crossovers of the RVI and the SignalLine. Trading Signals are generated when there is a cross over of the 2 lines.

Bullish Signals - a buy signal occurs when the RVI crosses above the Signal-Line.

Bearish Signals - a sell signal occurs when the RVI crosses below the Signal-Line.

Buy & sell signals generated using the crossover method - Relative Vigor Index EA Setup