DEFINITION of 'Relative Vigor Index  RVI'
An indicator used in technical analysis that measures the conviction of a recent price action and the likelihood that it will continue. The RVI compares the positioning of a security's closing price relative to its price range, and the result is smoothed by calculating an exponential moving average of the values.
The indicator is calculated by using the following formula:
INVESTOPEDIA EXPLAINS 'Relative Vigor Index  RVI'
The RVI indicator is calculated in a similar fashion to the stochastic oscillator, but the vigor index compares the close relative to the open rather than to the low. Traders expect the RVI value to grow as the bullish trend gains momentum because in this type of environment, a security's closing price tends to be at the top of the range while the open is near the low of the day.

Trend
The general direction of a market or of the price of an asset. ... 
Momentum
The rate of acceleration of a security's price or volume. The ... 
Technical Analysis
A method of evaluating securities by analyzing statistics generated ... 
Closing Price
The final price at which a security is traded on a given trading ... 
Stochastic Oscillator
A technical momentum indicator that compares a security's closing ... 
Exponential Moving Average  EMA
A type of moving average that is similar to a simple moving average, ...

What are the best technical indicators that complement the Relative Vigor Index (RVI)?
Some of the best technical indicators to complement using the relative vigor index (RVI) are moving averages and the average ... Read Full Answer >> 
How do I use Relative Vigor Index (RVI) to create a forex trading strategy?
A forex trading strategy designed to make maximum profits from a longterm uptrend can be created using the Relative Vigor ... Read Full Answer >> 
What is a common strategy traders implement when using the Relative Vigor Index (RVI)?
A common trading strategy that can be implemented using the relative vigor index (RVI) is to employ it in the same manner ... Read Full Answer >> 
What is the difference between fast and slow stochastics in technical analysis?
The main difference between fast and slow stochastics is summed up in one word: sensitivity. The fast stochastic is more ... Read Full Answer >> 
Would a slow stochastic be effective in day trading?
Given the hundreds of indicators that are available to traders, finding the appropriate technical tools to use in day trading ... Read Full Answer >> 
What technical tools can I use to measure momentum?
One of the main goals of every trader using technical analysis is to measure the strength of an asset's momentum and the ... Read Full Answer >>

Forex Education
Stochastics: An Accurate Buy And Sell Indicator
Find out how stochastics are used to create buy and sell signals for traders. 
Chart Advisor
4 Bullish Flag Patterns You Should Trade Now
Here are four stocks with flag patterns, highlighting the various ways to trade this chart pattern. 
Chart Advisor
These Transportation Stocks Are at a Crossroads
These shipping and railroad stocks are testing resistance. A break above signals an emerging uptrend; a break lower, a continuation of the downtrend. 
Technical Indicators
Trade This High Probability Bollinger Band Pattern
Bollinger Band box patterns set up profitable opportunities when trends give way to well organized trading ranges. 
Trading Strategies
Know How To Manage Gaps On Your Trading Strategy
Gaps generate profitable strategies right after they print, as well as during retracements that test those levels, often months or years later. 
Charts & Patterns
Why These Are 2015's MostPromising Bank Stocks
Which bank stocks should offer the best bang for your buck in 2015? Possibly these, so read on. 
Chart Advisor
Trade Healthcare Providers with this ETF
In good times and bad times one of the best sectors for retail investors to look into is the healthcare providers. Here's an ETF to consider. 
Fundamental Analysis
Interested In Pharmaceutical Stocks? Try Novartis (ADR)
Novartis AG, is the world's leading pharmaceutical company by sales. Here is a closer look at Novartis, and how its financials stack up. 
Fundamental Analysis
Is Apple's Stock Over Valued Or Undervalued?
Despite several drawbacks, the CAPM gives an overview of the level of return that investors should expect for bearing only systematic risk. Applying Apple, we get annual expected return of about ... 
Trading Strategies
Trading On The Psychology Of Round Numbers
Price action around big round numbers, like 10, 100 and 1000 set up special trading opportunities that take advantage of shifting crowd psychology.