The Relative Vigor Index (RVI) is a technical analysis indicator that is used to measure the strength of a security's price action. It was developed by John Ehlers, and is similar to the Relative Strength Index (RSI) in that it compares the magnitude of recent price changes to determine whether a security is overbought or oversold.The RVI is calculated using the following formula: -RVI = ((Close - Open) / (High - Low)) / ((Close - Open) / (High - Low))The RVI ranges from 0 to 100, with high values indicating that the security is overbought and low values indicating that it is oversold. Some traders use the RVI as a trade entry and exit signal, while others use it as a trend-following indicator to identify trends that are gaining or losing momentum.It is important to note that the RVI is a lagging indicator, meaning that it is based on past price data and may not always accurately predict future price movements. It is also prone to giving false signals, especially in range-bound markets. As such, it should be used in conjunction with other technical analysis tools and market analysis techniques.
