what does the relative vigor index rvi tell you 
the rvi indicator is calculated in a similar fashion to the stochastics oscillator but it compares the close relative to the open rather than comparing the close relative to the low traders expect the rvi value to rise as the bullish trend gains momentum because in this positive setting a security s closing price tends to be at the top of the range while the open is near the low of the range in other words during an uptrend prices often close higher than they open while during a downtrend prices often close lower than they open the rvi is interpreted in the same way as many other oscillators such as moving average convergence divergence macd or the relative strength index rsi while oscillators tend to fluctuate between set levels they may remain at extreme levels over a prolonged period of time so that interpretation must be undertaken in a broad context to be actionable the rvi is instead a centered oscillator and not a banded trend following oscillator which means that it s typically displayed above or below the price chart moving around a center line rather than the actual price it s a good idea to use the rvi indicator in conjunction with other forms of technical analysis in order to find the highest probability outcomes 1example of how to use the relative vigor index rvi a trader might examine potential changes in a trend with the rvi indicator by looking for divergences with the current price the trader would then identify specific entry and exit points with traditional trendlines and chart patterns the two most popular trading signals include the rvi works best in trending markets it tends to generate false signals in rangebound markets results can be improved by setting longer term lookback periods which help to reduce the impact of whipsaws and short term countertrends 