The i_dayrvi_v1_1 indicator for MetaTrader4 is a Relative Vigor indicator, whereby the indicator period is computed automatically via the use of the current day’s number of bars.
The design of the i_dayrvi_v1_1 indicator is similar to that of the Stochastics asides the fact that the closing price is linked with the open instead of the low price of the period. It is expected that the i_dayrvi_v1_1 would signal change in direction and also increase in value when in bullish markets as momentum surges and closing prices race past opening price.
There seems to be smoother fluctuations in a manner that divergences between the pair and price behavior makes more sense.
The values of the i_dayrvi_v1_1 indicator oscillates between computed negative and positive values. There’s a midpoint at “0.00” on the i_dayrvi_v1_1 indicator chart and also a weighted moving average vibrating about it.
High values of the i_dayrvi_v1_1 indicator are interpreted as price being overbought i.e. a bearish signal, while low values of the i_dayrvi_v1_1 indicator are indicative of a strong oversold condition i.e. a bullish signal.
There are basically two fluctuating curves on the i_dayrvi_v1_1 indicator – the “Red” line, which is the smoother i_dayrvi_v1_1 values, and the “Blue” signal line. The i_dayrvi_v1_1 is seen as a leading indicator, especially when its lines intersect into extreme regions or when the values of the i_dayrvi_v1_1 indicator diverge from present price action.
One of demerit in deploying the i_dayrvi_v1_1 indicator lies in its timing – most times it gives counter-intuitive values that will confuse instead of aid traders. An additional indicator may reduce the likelihood for false signals.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (DaysForCalculation), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours