Relative Vigor Index (RVGI) Indicator Explained

The Relative Vigor Index (RVGI) rests on one observation: in healthy uptrends, bars tend to close above where they opened. It measures (close − open) relative to (high − low), smoothed over the period — the market's vigor, bar by bar.

How It Works

• Close-minus-open is normalized by the bar's range and smoothed with a weighted average.
• A signal line (further smoothing) enables crossovers.
• Positive RVGI = sessions keep closing stronger than they open.

How to Trade It

Trade RVGI/signal crossovers in the direction of the trend, or use divergence: price grinding higher while RVGI fades means the closes are getting weaker inside each bar — distribution in progress. It's a conviction check on any breakout.

Building It in Setup.Cash

Add Relative Vigor Index (RVGI) in the strategy builder — the length input controls its sensitivity — and use its value in any entry, exit, or filter condition. You can also combine it with other tools in the Indicators Lab or via the AI indicator generator. The Balance of Power is the raw single-bar version of the same idea. For the full category overview, see the advanced momentum library guide.

Momentum signals are timing tools — combine them with a trend or regime filter and backtest the exact rules before going live.