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RVI Overview

The Relative Vigor Index (RVI) measures the conviction of price movement by comparing the close-open range to the high-low range. When prices close near their highs consistently, RVI rises (bullish vigor). When closes are near lows, RVI falls (bearish vigor).

RVI is unique among momentum indicators because it measures the quality of price movement (where within the bar price closes) rather than the magnitude.

How Relative Vigor Index Works

Section titled “How Relative Vigor Index Works”

Core Concept

Section titled “Core Concept”
  1. Calculate RVI value from the input price/volume data
  2. Apply smoothing if applicable
  3. Compare to threshold or signal line for signal generation
  4. Interpret: Signals indicate momentum direction or extremes

Key Characteristics:

  • Momentum Indicator = Measures momentum direction and strength
  • Signal Line Available = Threshold-based signals only
  • Bounded = No (unbounded)

Visual Interpretation

Section titled “Visual Interpretation”

RVI Behavior:

  • Bullish vigor — closes near highs
  • Bearish vigor — closes near lows

Trading Signals Available on Reversion

Section titled “Trading Signals Available on Reversion”

These are the signal names you select when configuring RVI in the algorithm builder or via the MCP agent:

SignalTriggers WhenTypical Use
rvi_above_thresholdRVI value rises above thresholdBullish vigor — closes near highs
rvi_below_thresholdRVI value falls below thresholdBearish vigor — closes near lows

Display: Separate pane

Category: Momentum

Threshold range: Unbounded (centered on zero)

Key Characteristics

Section titled “Key Characteristics”

What Relative Vigor Index Does Well:

  • Clear Directional Signals
  • Combines well with trend filters
  • Threshold-based signals for entry timing