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RVI Gold Analysis & Relative Vigor Index Signals

Developed by John Ehler

The Relative Vigor Index blends classic analysis with modern digital trade signal processing and filters, making it a practical technical indicator.

The fundamental concept behind it is straightforward -

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

The strength of market movement is observed based on where prices settle at candle close. The Relative Vigor Index (RVI) plots two lines: the RVI line and a signal line.

The Relative Vigor Index (RVI) measures the average deviation between closing and opening gold prices, averages this difference against daily range values, and plots it for analysis.

Relative Vigor Index Best Settings - How to Trade RVI Indicator on xauusd Trading Charts

This makes the index a quick-to-react indicator that has fast turning points that move together with the market's price changes.

Analysis & Generating Signals

Relative Vigor Index is an oscillator trading indicator. The basic technique of interpreting the index is to use the crossover of the RVI and the SignalLine. Signals are generated/derived when there's 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 is indicated when the RVI indicator crosses beneath its corresponding Signal-Line.

Ehlers Relative Vigor Index, RVI Technical Indicator Analysis - Relative Vigor Index Best Setting

Buy and sell trading signals derived through the application of the crossover technique.

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