The Relative Vitality Index (RVI) is a technical indicator used to determine the current energy level or vitality of the market.
It is an oscillator based on the following concept: prices tend to close higher than the open price in an uptrend, while prices tend to close lower than the open price in a downtrend.
When the market is rising (bull market), the closing price is usually higher than the opening price, and the opposite is true when the market is falling (bear market).
By using the Relative Vitality Index to analyze price level movements between a market’s open and close, and comparing it to the results of the days before and after, we can determine the overall vibrancy of a market: in order to better predict the direction of certain trends. result.
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