# RVI MT4 Stock Indexes Indicator and Relative Vigor Index Indices Trading Signals

Developed by John Ehlers

The Relative Vigor Index combines the older concepts of MT4 Indices Indicator with modern digital signal processing theories and filters to create a practical & useful indicator.

The basic principle behind it is simple –

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

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

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

This makes the index a responsive MT4 Indices Indicator that has quick turning points that are in phase with the stock indexes trading market cycles of indices prices.

## MT4 Indices Technical Indicator and Generating Indices Trading Signals

The Relative Vigor Index is an MT4 Indices Technical Indicator. The basic method of interpreting the index is to use the crossovers of the RVI and the Signal Line. Signals are generated when the there is a crossover of the two lines.

Bullish Signals - a buy stock indices signal occurs when the RVI crosses** above** the **Signal Line**.

Bearish Signals - a sell stock indices signal occurs when the RVI crosses **below** the **Signal Line**.

**Buy and sell stock indices signals generated using the crossover method**