Relative Vigor Index Trading Rules and Signal Systems

Summary

The article explains the Relative Vigor Index (RVI), an oscillator that compares closing and opening prices relative to the bar’s high-low range, then smooths its values. It describes RVI’s two plotted lines and presents it as more suited to trending than ranging markets. The text outlines the indicator’s calculation and its use in MetaTrader 5, but its main focus is turning RVI conditions into automated signal rules.

Three rule sets are presented: an uptrend setup that buys when both RVI lines are above zero and the main line exceeds the signal line; a downtrend setup that shorts under the inverse conditions; and a combined RVI and moving average setup that compares price with a 100-period average while checking the RVI-line relationship. The article describes blueprints and MQL5 systems that report signals and indicator values. It offers no quantified performance evaluation, and explicitly frames the examples as educational starting points requiring testing and optimization before live use.

Key ideas

• RVI gauges momentum by comparing the close with the open in relation to the high-low range.
• The indicator uses a main line and a smoothed signal line, with zero-line position used to qualify directional signals.
• The article gives long and exit conditions for an uptrend and short and cover conditions for a downtrend.
• A separate rule set combines the RVI line relationship with price relative to a 100-period moving average.
• The example systems generate signals in MetaTrader 5, but the article provides no performance evidence and recommends further testing.

Tags

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