Indicator "Relative Vigor Index": How Does It Work?

Relative Vigor Index (RVI) is a technical indicator that helps traders assess the strength of the current trend. It measures the relationship between the closing and opening prices over a specific period, analyzing their changes relative to previous values. The primary goal of the RVI is to identify overbought and oversold conditions in the market. Unlike other oscillators, the RVI takes into account not only the closing price but also its fluctuations relative to the opening prices. This makes the indicator a valuable tool for identifying the right moment to enter or exit trades, confirming trends at later stages of their development.