FOREX TECHNICAL ANALYSIS WITH RELATIVE VIGOR INDEX TECHNICAL INDICATOR ~ forex trading companies in india
Relative Vigor Index is a popular member of Oscillator family of technical indicators. RVI is classified as oscillator because it is a range bound technical indicator. It has a zero line at the middle and two curves move with a specified range. With RVI technical indicator, entry and exit signals can be found in two ways with the crossovers and RVI-price divergence and convergence.
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| Source:metatrader4.com |
A buy signal is found when the green line crosses the red line from down in over sold area hence below the zero line. In other way, a sell signal is found when the green line crosses the red line from up in over bought area hence above the zero line.
In second way the price and RVI divergence and convergence can be used to find the entry and exit signals. To find the divergence and convergence, crossovers of green line and red line are considered.
From the linked post we can find three bullish divergences and three bearish convergences. A bullish divergence is found when the price makes a higher high but RVI does not. On the other hand, a bearish convergence is found when the price makes a lower low but the RVI does not.
Zero line crossovers from down confirms a bullish trend, and a zero line crossovers from up confirms a bearish trend.
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