Adapting RVI Overbought and Oversold Bands with Bollinger Bands

Summary

This indicator combines the Relative Vigor Index oscillator with Bollinger Bands to define overbought and oversold boundaries. The bands are intended to adjust the reference thresholds to changing conditions, so oscillator extremes are evaluated relative to a moving range rather than fixed levels.

The document lists configurable inputs for the RVI period, band deviation, optional smoothing of the bands, and horizontal shift. It offers no interpretation rules, entry or exit logic, chart evidence, or backtest results. Consequently, it describes an indicator construction and its controls, but does not establish whether the adaptive boundaries improve signal quality or how they should be applied in a trading system.

Key ideas

• The indicator applies Bollinger Bands as overbought and oversold boundaries for the RVI oscillator.
• The RVI lookback period and band deviation are configurable.
• A setting controls whether the bands use smoothing.
• The document gives no trade rules or performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.