RVI for MT4 measures trend strength and is a momentum indicator. RVI (Relative Vigor Indicator) is similar to the RSI – Relative Strength Index indicator, but the calculation method is a lot different. If the price closes higher than a specified period, the indicator will determine if there is a bullish trend. The price should also close lower for a bearish tendency.
The indicator uses the crossover of indicator lines to determine bullish and bearish price trend and provide buy and sell forex signals. This indicator is suitable for both novice and experienced traders. Forex traders who have used the RSI before will be able to trade the RVI indicator. Advanced forex traders can also use the divergence indicator, which acts as a leading indicator.
RVI Indicator For MT4 Trading Signals
Different trading strategies can be used by forex traders to this indicator. First, the cross-section of the red and green lines is the best method. The green line crossing the red line upwards indicates a bullish trend in price. Forex traders can also enter the market by placing a buy order and adding a stop-loss below the swing low. The indicator doesn’t provide a profit target so traders can exit the trade when the signal changes. In a bearish trend, however, the green line crosses over the red line downwards. Forex traders can sell trades with stop losses above the swing high.
Next, we will use the Zero line. In an uptrend, the indicator line will move above the zero line and vice versa in a downtrend. Forex traders can trade buy and sell orders in order to enter the market. The RVI indicator’s next trading method is the convergence and divergence of the indicator line. This makes the RVI indicator an important indicator that provides early trading signals for trend reversals.
The slope of the RVI indicator lines essentially indicates increasing or decreasing momentum. Forex traders can use the slope to determine the strength or weakness in the current price trend.
The RVI indicator, taken as a whole, provides an overview of the market and acts as a leading indicator when using divergence trading.
RVI for MT4 reflects trend movements using a different calculation process than the RSI. Both indicators can provide forex trading signals, both bullish and bearish. Before buying or selling with the trading signals, forex traders need to spend some time learning about the RVI. Forex traders can also download the indicator free of charge and easily install it.