The Relative Vigor Index (RVI) is a momentum oscillator developed by John Ehlers that measures the strength of a price trend by comparing the closing price relative to the trading range (high-low) of the period — based on the premise that in a bull market, prices tend to close higher than they open (positive vigor), and in a bear market, prices tend to close lower than they open (negative vigor). The RVI is calculated as a smoothed ratio of the close-to-open price change relative to the high-to-low range, plotted alongside a signal line (a moving average of the RVI). Buy signals are generated when the RVI crosses above the signal line, and sell signals when it crosses below. The RVI is particularly effective in trending markets and is less useful in range-bound conditions. In Indian equity trading, the RVI is used as a secondary confirmation tool alongside price action and volume analysis — particularly in Nifty 50 and Bank Nifty intraday and positional strategies — to confirm the conviction behind price moves.
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