The Relative Vigor Index was developed by John Ehlers in 2002 to measure the conviction behind price moves through a different lens than traditional oscillators. Ehlers’s premise: in genuine bull markets, prices tend to close higher than they open. In bear markets, prices close lower than they open. The RVI quantifies this open-to-close relationship over a chosen period and produces a signal line for crossover-based entries.
It’s not a household name like RSI or MACD, but for trend-confirmation purposes on H4 charts, RVI does something subtly different that deserves a place in your toolkit.
What is the Relative Vigor Index?
RVI is calculated by comparing the close-minus-open value of recent bars to the high-minus-low range. The numerator (close – open) measures directional conviction; the denominator (high – low) normalises by volatility. Both values are smoothed with a 4-bar simple moving average to reduce noise.
The output is a single line plus a signal line (typically a 4-bar SMA of RVI itself). Both oscillate around zero with no fixed bounds, though most readings stay between -1 and +1 on forex pairs.
How RVI Works on MT4
RVI is built into MT4. Insert > Indicators > Oscillators > Relative Vigor Index.
Two main signals:
The signal-line cross. RVI crossing above its signal line is a buy trigger; crossing below is a sell trigger. Same concept as MACD’s signal-line cross.
The zero-line cross. RVI crossing above zero confirms upward conviction; below confirms downward. Slower trend-flip signal.
Divergence also works on RVI but fires less often than on RSI or MACD. When RVI divergence does appear on H4, treat it as a high-quality reversal warning.
Key Features
- Built into MT4 – Insert > Indicators > Oscillators > Relative Vigor Index
- Open-to-close logic differs from price-position oscillators (Stochastic, Williams %R)
- Centred on zero with optional signal line
- Non-repainting once candles close
- Default 10-period works well across most timeframes
- Lightweight, runs alongside other indicators
Best Settings for RVI Indicator
| Parameter | Default | Faster | Slower |
|---|---|---|---|
| RVI Period | 10 | 5 | 14 |
| Signal Period | 4 | 3 | 4 |
Recommended starting point: Default 10 with 4-period signal line on H4.
Pros and Cons
| Pros | Cons |
|---|---|
| Open-to-close logic captures conviction missed by price-position oscillators | Less popular than RSI/MACD – sparse trading literature |
| Built into MT4, non-repainting, easy to use | Lags noticeably in fast-moving markets |
| Signal-line cross is reliable for trend-confirmation entries | Less effective on M5/M15 where open-to-close swings are tiny |
| Works well on trending H4 forex pairs | Limited use as a primary signal generator |
How to Install RVI on MT4
Step 1: Open MT4 and select your chart.
Step 2: Click Insert > Indicators > Oscillators > Relative Vigor Index.
Step 3: Set Period to 10. Click OK.
Step 4: Save as a template.
Trading Strategy: RVI Signal-Line Cross with Trend Filter
Setup: RVI(10, 4) on H4. 50 EMA on price.
Buy Signal:
1. Price is above the 50 EMA
2. RVI crosses above its signal line
3. RVI is above or rising toward zero
4. Enter long on the close of the cross candle
Sell Signal:
1. Price is below the 50 EMA
2. RVI crosses below its signal line
3. RVI is below or falling toward zero
4. Enter short on the close
Stop Loss: Beyond the recent swing extreme.
Take Profit: 1:2 R:R or trail by the 50 EMA.
The trend filter is essential. RVI alone produces too many false crossovers in ranging markets.
Frequently Asked Questions
Is RVI free?
Yes. Built into MT4 and the enhanced version below is free.
Does RVI repaint?
No.
Best timeframe for RVI?
H4 – that’s where the open-to-close logic shows up most clearly. H1 works; below H1 the open-to-close swings are too small.
RVI vs Stochastic?
Stochastic measures close-position-in-range. RVI measures close-position-relative-to-open within range. Different mechanics, different signal cadence. RVI is slower but more conviction-focused.
Can I use RVI on MT5?
Yes. Built into MT5 with identical behaviour.
Download Enhanced RVI Indicator for MT4 – Free
- Multi-timeframe display
- Signal-line cross alerts
- Divergence detection
Platform: MT4 (Build 1000+)
File type: .ex4
File size: 13 KB
Version: 1.9
Last updated: April 2026
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- The non-repainting RVI Indicator file (.ex4)
- Step-by-step installation guide
- Best-performing settings for day and swing trading
- The exact signal-line cross rules I use in live trading
- Weekly trading insights from a developer with 16+ years of market experience
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- Weekly trading insights from a developer with 16+ years of market experience
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Overall Rating: 4.1/5
| Category | Rating |
|---|---|
| Accuracy | 4.0/5 |
| Ease of Use | 4.3/5 |
| Features | 3.9/5 |
| Value | 4.2/5 |
Related Indicators
- Stochastic Oscillator MT4 – Position-in-range oscillator with crossover signals
- MACD Indicator MT4 – The signal-line cross hybrid
- RSI Indicator MT4 – Smoother momentum read
- Best Oscillator Indicators for MT4
- How to Install Custom Indicators on MT4
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