Relative Vigor Index Expert Advisor Setup - Setting Up Relative Vigor Index Expert Advisor

Relative Vigor Index Expert Advisor Setup - Setting Up Relative Vigor Index Expert Advisor - A trader can come up with an Relative Vigor Index Expert Advisor based on the Relative Vigor Index indicator explained below.

Relative Vigor Index Expert Advisor rules can be combined with other Forex technical indicators to come up with other EA Robots that trade using rules based on two or more indicators combined to form a trading system.

RVI Technical Analysis and Relative Vigor Index Signals

Developed by John Ehlers

The Relative Vigor Index combines the older concepts of technical analysis with modern digital signal processing theories and filters to create a practical & useful indicator.

The basic principle behind it is simple -

• Prices tend to close higher than they open in up-trending markets and
• Prices close lower than they open in down-trending markets.

The momentum (vigor) of the move will therefore established by where the prices end up at the close of the candle. Relative Vigor Index plots 2 lines the RVI Line and the signal Line.

The RVI index is essentially based on measuring of the average difference between the closing & opening price, and this value is then averaged to the mean daily trading range and then plotted.

Relative Vigor Index Expert Advisor Setup

This makes the index a responsive oscillator that has quick turning points which are in phase with the market cycles of prices.

FX Technical Analysis & How to Generate Signals

The Relative Vigor Index is an oscillator. Basic method of analyzing the index is to use the crossovers of the RVI & the SignalLine. Signals are generated when there is a cross-over of the 2 lines.

Bullish Signals - a buy signal occurs when the RVI crosses above the SignalLine.

Bearish Signals - a sell signal occurs when the RVI crosses below the SignalLine.

Buy & sell signals generated using the crossover method - Relative Vigor Index Expert Advisor Setup