Relative Volatility Index

Definition

The Relative Volatility Index (RVI) is a volatility indicator, much like the Relative Strength Index (RSI), but with a few key differences. The RVI measures the standard deviation of prices as they change over time, whereas the RSI measures absolute price changes. The Relative Volatility Index is plotted on the chart and ranges from 0 to 100. 

History 

The Relative Volatility Index indicator was first introduced by Donald Dorsey. It was developed in order to indicate and show volatility direction on the chart.

Calculations

The RVI is calculated much like the RSI, although it uses high and low price standard deviation instead of the RSI’s method of absolute change in price.

Takeaways

When the Relative Volatility Index value is calculated to be above 50, this means the volatility is to the upside. This means that a potential buy signal is confirmed. On the other hand, when it’s calculated below 50, the volatility is to the downside, which confirms a potential sell signal. Like the RSI, the RVI can also be used to determine overbought and oversold conditions.

What to look for

The Relative Volatility Index indicator performs similarly to the RSI indicator, and you should be well-versed in the differences between the two. The RVI has a particular advantage, according to the indicator’s developer, Donald Dorsey, which is that the RVI is a “confirming indicator” and provides information and data that the RSI is otherwise lacking in its calculation and overall performance.

Summary

The Relative Volatility Index measures the standard deviation of prices as they change over time and is displayed on the chart with a range of 0 to 100. If the RVI value is above 50, the volatility is to the upside and confirms a potential buy signal. Contrarily, when the value is below 50, the volatility is to the downside, which confirms a potential sell signal.

홈으로 스탁 스크리너 포렉스 스크리너 크립토 스크리너 이코노믹 캘린더 정보 차트 특징 프라이싱 프렌드 리퍼하기 하우스룰(내부규정) 헬프 센터 웹사이트 & 브로커 솔루션 위젯 차팅 솔루션 라이트웨이트 차팅 라이브러리 블로그 & 뉴스 트위터