RVI Bitcoin Analysis & Relative Vigor Index Signals

Created by John Ehler

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

The basic principle behind it is simple -

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

The momentum (vigor) of the move will therefore established by where the bitcoin 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 & opening bitcoin price, & this value is then averaged to the mean daily range and then drawn.

This makes the index a responsive oscillator that has quick turning points that are in phase with the btcusd market cycles of bitcoin prices.

BTCUSD Analysis & Generating Signals

The Relative Vigor Index is an oscillator. Basic technique of analyzing the index is to use the crossovers of the RVI & the SignalLine. Signals are generated when the there is a cross-over of the 2 lines.

Bullish Signals - a buy cryptocurrency signal occurs when the RVI crosses above the Signal Line.

Bearish Signals - a sell cryptocurrency signal occurs when the RVI crosses below the Signal Line.

Buy and sell signals generated using the crossover method