An oscillator built on the idea that strong markets close above their open. It normalizes (close − open) by (high − low), smooths it with a 4-bar weighted average, and reads momentum through signal-line crosses.
The RVI (Relative Vigor Index) is an oscillator published by John Ehlers in 2002.
The core idea fits in one line. In a strong market, the close prints above the open. In a weak market, the close prints below the open.
If you bought at the open and held to the close, are you ahead or behind at the bell? That daily tug-of-war result is what Ehlers calls "vigor," and the RVI turns it into a number.
But using (close − open) raw would leave the reading at the mercy of volatility. To compare big-range days and small-range days on the same footing, you divide by that bar's range (high − low) to normalize it. This normalization is the heart of the design.
How to Read
OANDA:USDJPY
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