Combining Renko Direction with Relative Vigor Index Signals

Summary

This trend-following approach combines ATR-sized Renko levels with the Relative Vigor Index (RVI). The description says a new upward or downward Renko brick marks directional price movement, while RVI compares buying and selling pressure: values above or below its midpoint indicate relative strength, and crossings of its smoothed signal line are used as reversal cues. The stated concept is to use the chart direction and RVI together to select entries and exits, filtering some ordinary price fluctuation.

The document lists a nine-period ATR for brick sizing and discusses adapting brick size and RVI parameters across instruments and timeframes. Its published configuration is a BTC/USDT futures backtest on daily bars with hourly base data for about a year, but no performance results are given. There is also a discrepancy between the prose and source: the prose describes combining Renko and RVI for both directions, whereas the code enters long on upward Renko changes and closes longs on an RVI cross; it does not implement the described short entry. Brick size and indicator settings can alter trade frequency, and confirmation may miss moves.

Key ideas

• Renko levels based on ATR are intended to emphasize larger price moves and suppress smaller fluctuations.
• RVI and its smoothed signal line are used to assess changing buying and selling pressure.
• The described approach combines Renko direction and RVI cues to time trend trades.
• Brick sizing and RVI parameters affect signal frequency and may need testing across markets and timeframes.
• The source implements long entries and RVI-based long exits, but not the short entries described in the prose; no results are reported.

Tags

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