Relative Vigor Index (RVI) Forex Trading Strategy

The Relative Vigor Index (RVI) Forex Trading Strategy is based on a lesser know forex indicator called the Relative Vigor Index or the RVI.

The  RVI indicator is an indicator that is not so popular as its cousins, the Stochastic Indicator and the Relative Strength Idex (RSI) indicator. Most forex trading systems either consists of the stochastic or the RSI indicator and less of the RVI indicator.

However, in this post, you will learn about how to trade the RVI indicator.

Relative Vigor Index Mt4 Indicator and How To Trade it

If you want to know more more about the RVI indicator, I found this article really interesting, you can check it out:

Trading With Relative Vigor Index (RVI)

Currency Pairs you can trade: Any

Traidng Timeframes: 1hr and above

Forex Indicators: only the Relative Vigor Index is required

Refer to this chart below for the buying and selling rules:

Relative Vigor Index (RVI) Forex Trading Strategy

 

Buy Rules

  1. A buy signal is generated when the RVI indicator is below the zero  level and is heading up after the crossover of RVI indicator.
  2. After cross over of the RVI indicator happens, you just wait for a bullish candlestick.
  3. Place a buy stop order at least 2 pips above the high of that candlestick and place your stop loss 2-5 pips below that candlestick’s low or if that will be too close to the entry price, the place your stop loss just 2 pips above the nearest swing low.
  4. Aim for a take profit that is 2 or 3 times more than what your initial risk was or if not use the previous swing high as your take profit target level and even that, make sure it is 2 or 3 times more than what you risked initially.

Sell Rules

  1. A sell signal is generated when the RVI indicator is abovethe zero  level and is heading down after the crossover of RVI indicator.
  2. After cross over of the RVI indicator happens, you just wait for a bearish candlestick signal
  3. Place a sell stop order at least 2 pips above the low of that candlestick and place your stop loss 2-5 pips above that candlestick’s high or if that will be too close to the entry price, the place your stop loss just 2 pips below the nearest swing high.
  4. Aim for a take profit that is 2 or 3 times more than what your initial risk was or if not use the previous swing low as your take profit target level and even that, make sure it is 2 or 3 times more than what you risked initially.

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