Instant account opening
Site map
Български Čeština English Français Deutsch Italiano Polski Português Română Русский Slovenský Español Nederlands

InstaForex Client Area

  • Personal settings
  • Access to all InstaForex services
  • Detailed statistics and reports on trades
  • Full range of financial transactions
  • System of managing several accounts
  • Maximum data protection

InstaForex Partner Area

  • Full information on clients and commissions
  • Graphic statistics on accounts and clicks
  • Webmaster instruments
  • Ready-made web solutions and wide range of banners
  • High data protection level
  • Company's news, RSS feeds, and forex informers
Register account
cabinet icon

InstaForex – always at the forefront!Open a trading account and become a part of the InstaForex Loprais Team!

Success history of the team headed by Ales Loprais can become your success history! Trade confidently and head towards leadership like regular participant of Dakar Rally and winner of Silk Way Rally InstaForex Loprais Team does it!

Join in and win with InstaForex!

Instant account opening

Registration is not available for non-EU residents. Please, proceed to the website of the other member of the InstaForex group.
toolbar icon

Trading Platform

For mobile devices

Formula

RVIorig = 100*( EMA[W14] of U)/( EMA[W14] of S)

RVI = (RVIorig of highs + RVIorig of lows)/2, where


S = Stddev (10 days) - standard deviation for the period of 10 days;

U = S, if the current price is higher than the price of the previous period;

U = 0, if the current price is lower than the price of the previous period;

EMA (w14) = exponential moving average for the period of 14 days;

RVIorig of highs - relative volatility index of highs;

RVIorig of low - relative volatility index of lows.

Trading use

The main advantage of RVI is that it is based on RSI index and considers all levels of diversification which could be omitted by RSI. However, RVI is volatile indicator but not classical oscillator that is why it is not reasonable to use it independently. As consequence, it is better to combine RVI signals with oscillator signals of technical analysis, for example, RSI indicator.

In case RSI indicator gets into oversold zone overcoming 70% together with RVI, we receive a powerful signal that the price hikes will end soon and the decrease will begin.

Also, if both RSI and RVI indicators go under 30% level, in other words get into overbought zone, it is necessary to be prepared for price surge. According to this, it is better to use a combination of these two indicators than apply them independently.

When RSI is more than 70% or less than 30% but RVI does not confirm these signals, it is better to wait till both of them will show similar picture before open a position.

Another option for applying RVI is identification of divergences and convergences with the price. If the price is going up while the index is going down, it indicates that the price will soon go down (case of divergence).

The opposite situation is also true to life: the index is falling while the price is growing which is indicative of price acceleration (case of convergence).

Forming of these signals is more relevant when RVI is in overbought or oversell zone. But even if RVI index gets into neutral zone (between 30%-70%), divergence/convergence signals will be also indicative.

Given that RVI considers a larger scale of parameters than RSI index, the signals received with the help of RVI will be much better.

Relative Volatility Index - RVI

InstaForex RVI Parameters

RVIperiod = 14

Download


Back to the list
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 48.65% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.