How to apply the Relative Vigor Index (RVI) indicator?

@morton 

To apply the Relative Vigor Index (RVI) indicator, follow these steps:

1. Calculate the RVI by taking the difference between the closing price and the opening price for a given period (usually 4 or 10 days), and dividing it by the difference between the high and low prices for the same period.
2. Smooth the RVI by calculating an exponential moving average (EMA) of the RVI values over a certain number of periods (usually 9 or 14).
3. Plot the RVI and its EMA on a price chart to visually identify buy and sell signals.
4. Look for divergences between the RVI and price movements, as these can indicate potential trend reversals.
5. Use the RVI as a confirmation tool for other technical indicators or trading strategies.
6. Pay attention to overbought and oversold conditions indicated by extreme RVI values, as these can signal potential reversal points in the market.

Overall, the Relative Vigor Index is a useful tool for analyzing the strength of price movements and identifying potential trend reversals in the market. It is important to incorporate the RVI into a comprehensive trading strategy and use it in conjunction with other technical indicators for best results.