Relative Vigor Index (RVI) calculation is based on the idea that close prices are usually higher than the open ones during an uptrend.
The reverse situation is true in case of a downtrend. The price change is divided to the maximum prices range within one bar to normalize the index:
RVI = (CLOSE – OPEN) / (HIGH – LOW)
where:
OPEN – open price;
HIGH – highest price;
LOW – lowest price;
CLOSE – close price.
The oscillator is smoothed to exclude occasional price fluctuations. The signal line is generated the same way. The main advantage of this variant of the well-known indicator is the possibility to change RVI and the signal line smoothing algorithms by selecting an appropriate one out of ten algorithms present:
SMA – simple moving average;
EMA – exponential moving average;
SMMA – smoothed moving average;
LWMA – linear weighted moving average;
JJMA – JMA adaptive average;
JurX – ultralinear smoothing;
ParMA – parabolic smoothing;
T3 – Tillson’s multiple exponential smoothing;
VIDYA – smoothing with the use of Tushar Chande’s algorithm;
AMA – smoothing with the use of Perry Kaufman’s algorithm.
It should be noted that Phase parameter has completely different meaning for different smoothing algorithms.
For JMA it is an external Phase variable changing from -100 to +100.
For T3 it is a smoothing ratio multiplied by 100 for better visualization;
For VIDYA it is a CMO period, for AMA it is a slow EMA period;
For AMA fast EMA period is a fixed value and is equal to 2 by default. The ratio of raising to the power is also equal to 2 for AMA.
The indicator uses SmoothAlgorithms.mqh library classes (must be copied to the terminal_data_folder\MQL5\Include). The use of the classes was thoroughly described in the article “Averaging Price Series for Intermediate Calculations Without Using Additional Buffers”.
