Relative Vigor Index

The Relative Vigor Index compares where price closes relative to where it opens, smoothing close-minus-open against high-minus-low over a lookback window so traders can gauge the conviction behind recent bars. This build is the standard raw version — the RVGI line with a default length of 10 and its fixed 4-period symmetrically weighted signal line.

Close-minus-open and high-minus-low each get a 4-bar symmetric weighting, then a sum over the length window before dividing — identical treatment that damps noise while keeping the scale consistent.

How to Trade the Relative Vigor Index?

• RVGI above zero: bars are closing above their opens on balance — buyers finish the bars in control.
• RVGI below zero: closes are settling under the opens, the bearish condition.
• RVGI crossing above the Signal line: an upturn in vigor; crosses carry more weight when they agree with the prevailing trend.
• RVGI crossing below the Signal line: the downturn read; both crosses are covered by alert conditions.
• Divergence at extremes: a fresh price high against a lower RVGI high says bar-level conviction is fading even as price stretches on.

The line swings around a dashed zero reference with no hard bounds, so what counts as stretched comes from the instrument's recent swings.

Relative Vigor Index Settings

• Length (default 10): the number of bars summed for the smoothed numerator (close minus open) and denominator (high minus low). A longer window produces a slower, steadier line suited to swing reads; a shorter one turns faster and crosses its signal more often. The 4-bar signal smoothing is fixed by the classic construction.

Frequently Asked Questions

How is the Relative Vigor Index different from the Stochastic Oscillator?

The stochastic asks where the close landed inside the lookback's high-low span; the RVGI asks how each bar finished relative to its own open, then smooths that tendency. Position versus zero doubles as a bias read, something a 0-100 scale cannot give, in exchange for turns that register a touch later.

Does the Relative Vigor Index work on all markets?

It works best where the session open is a meaningful auction point, as in stocks and futures. Instruments that trade around the clock open almost exactly where they last closed, draining close-minus-open of content; very quiet tape also deserves caution, since a narrowing high-low denominator exaggerates small changes.

How should I combine the RVGI with other tools?

Use a trend reference to sort the crosses: those in the direction of the prevailing structure are worth acting on, while counter-trend crosses serve better as exit prompts. Divergences mean most at levels that already matter, such as prior swing highs.