Relative Vigor Index

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In previous posts, we have looked at different technical indicators and how day traders use them to make profits.

In this video tutorial, we will look at the Relative Vigor Index.

I will explain briefly what it is and how to use it to make profits.

However, like I have said before, in Forex trading, no one single indicator can consistently make you money.

This is simply because indicators rely on the past occurrences to predict what will happen in future.

To use the Relative Vigor Index Oscillator, go to the left panel of the MT4 platform and open it in the same way we have done in other indicators.

In the dialogue box that comes up, set your preferred parameters.

Below the currency chart you are using, you will see the Relative Vigor Window.

Remember that the logic behind this indicator is on the assumption that close prices have a tendency of being higher than open prices in a bullish position.

In the bearish environment, the tendency will be relatively lower.

In the Relative Vigor Index, when the green line goes above the red, it is the opportunity to go long.

If the red line goes above the green, its time to go short.

Remember that this is not always the case.

It is also important to note that no matter what the index says, it is important to take buy positions in support levels and sell positions in resistance levels in the chart.

Investors (traders) look at 4 main points.

These are high points, low points, divergences and crossovers.

An example of a short selling is when the green line diverges from the pricing behavior and when the red line also crosses it downwards.

You should also put a stop loss 20 pips above your entry point.

You should exit when the green line peaks and when the red line crosses it more than once.