The Relative Vigor Index (RVI) is an oscillator that compares how far a candle closes from its open with that candle's full range (high minus low). The idea is that in uptrends candles tend to close above their open, and in downtrends below it. It does not predict price: it describes the relative strength of recent movement and can give contradictory readings, so it should be read in context.
How the RVI is calculated
The calculation uses four consecutive candles with a symmetric weighting, then an average over several periods (10 is the common default on many platforms; check yours).
| Step | What is done |
|---|---|
| 1 | Numerator for each candle: close − open |
| 2 | Denominator for each candle: high − low |
| 3 | Smooth both with the weighting (a + 2b + 2c + d) ÷ 6 over the last four candles |
| 4 | Average the smoothed numerator and denominator over N periods |
| 5 | RVI = average numerator ÷ average denominator |
| 6 | Signal line: the same weighting (a + 2b + 2c + d) ÷ 6 applied to the last four RVI values |
Simplified practical example (illustrative figures)
To see the mechanics, use four candles and a single period (without the N-period average). From newest to oldest:
| Candle | Open | High | Low | Close | Close − open | High − low |
|---|---|---|---|---|---|---|
| 1 (current) | 10 | 13 | 9 | 12 | 2 | 4 |
| 2 | 12 | 13 | 10 | 11 | −1 | 3 |
| 3 | 11 | 14 | 10 | 13 | 2 | 4 |
| 4 | 9 | 12 | 8 | 11 | 2 | 4 |
Weighted numerator: 2 + 2×(−1) + 2×2 + 2 = 2 − 2 + 4 + 2 = 6. Weighted denominator: 4 + 2×3 + 2×4 + 4 = 4 + 6 + 8 + 4 = 22. Because the ÷ 6 factor appears in both, it cancels: RVI ≈ 6 ÷ 22 = 0.27. In practice the indicator averages N periods, so this only illustrates the mechanism; these are not market data.
How to read it
- Positive values: closes tend to sit above opens over the period observed. Negative: the opposite.
- Signal-line cross: when the RVI crosses its signal line, the relative momentum of the move changes. This is a description, not an instruction.
- Divergences: price makes a new extreme and the RVI does not. It may suggest fading strength, but it does not force price to turn.
RVI versus RSI and stochastic
| Indicator | What it measures | Range |
|---|---|---|
| RVI | Close relative to open and to each candle's range | No fixed bounds; oscillates around zero |
| RSI | Gains versus losses of consecutive closes | 0 to 100 |
| Stochastic | Position of the close within the range of several periods | 0 to 100 |
The RVI has no fixed overbought or oversold zones like the RSI, so it is interpreted through crosses and divergences. Like every indicator, it derives from price and adds no independent information.
Limits worth knowing
- It depends on the chosen period and timeframe.
- With very small-range candles the denominator approaches zero and the indicator can become unstable.
- Price gaps between candles are not reflected in close − open.
- Events on the economic calendar can break any reading.
- An isolated cross is not a buy or sell signal.
How AIM helps
AIM is AIMPATFX's quantitative artificial intelligence. AIM Market organizes the observable bias of a chart, scenarios, invalidation and objectives conditional on the data you provide; simulated scenarios are expressed as "X of N scenarios" and do not guarantee results. Read the quantitative methodology, the technical analysis guide and the risk management guide. The decision and the risk are always the user's.
Frequently asked questions
What does RVI mean in trading?
It stands for Relative Vigor Index: it compares the close with the open and with the range of each candle.
Is the RVI the same as the RSI?
No. The names are similar, but the RSI uses gains and losses of closes and is bounded between 0 and 100.
Which period is used?
Many platforms default to 10. Check your platform's value and do not change it without understanding the effect.
Does the signal-line cross tell me when to trade?
No. It describes a change in relative momentum; the decision and the risk are yours.
Sources and review: conceptual content with no market figures, written on 16 October 2026; verify the formula and parameters in your platform's documentation. Educational content; trading CFDs carries a risk of loss.
