The Relative Vigor Index (RVI) is a technical analysis indicator used to determine the strength of a trend in the financial markets. It was developed by John Ehlers and was first introduced in his book "Cybernetic Analysis for Stocks and Futures."

The RVI indicator is based on the idea that the strength of a trend can be measured by the closing price relative to the trading range of the asset over a given period of time. The RVI is calculated using the difference between the closing price and the opening price, with the difference being multiplied by the trading range over a given period of time. The result is then smoothed using a moving average.

The RVI is plotted as a histogram, with positive values indicating bullish momentum and negative values indicating bearish momentum. Traders use the RVI to confirm the strength of a trend and to identify potential trend reversals.

One of the unique features of the RVI is that it is designed to eliminate false signals that can occur with other momentum indicators. This is because the RVI is based on the difference between the closing and opening prices, rather than the absolute value of price changes. As a result, the RVI is considered to be a more accurate measure of price momentum.

Looking to learn about forex? Take our crash courses at our Forex University. If you’re looking to setup a demo trading account then click here. Finally, if you’re looking for Forex Signals, Forex Portugal provides free & premium signals on-demand.