Click here to Login








Relative Volatility Index

by bug man, 3522 days ago
Share |






The majority of technical trading indicators use the rate of change of security prices in their calculation. The Relative Volatility Indicator or RVI, uses a different time-series, it uses the volatility trend, which is calculated using the standard deviation of the security close price, to measure and evaluate market strength.

The relative volatility index uses the same calculation as the relative strength index (RSI). However, instead of using the close price, its formula uses the standard deviation of the past 10 bars/days. Like the RSI, this technical analysis indicator returns a value comprised between 0 and 100, where a value that is higher than 50 signify that the direction of the volatility is more on the upper side, while a value that is lower than 50 signify that the direction of the volatility is more on the lower side. The RVI can be interpreted as being bullish for the market or the stock if its value is higher 50 or 60 and bearish if the value is lower than 50 or 40.

The relative volatility index was developed by Donald Dorsey who also developed and created the Mass Index Indicator that is used to predict reversals in security prices. The current function is named "RVI"; it accepts a parameter that defines the lookback period or the number of bars to use in the calculation of the RVI. The period is the same as the one used to calculate the relative strength index.

For example, to calculate the relative volatility index using a lookback period of 14 bars:
a = rvi(14);

The volatility, which is calculated using the standard deviation of the close prices, always use a period of 10 bars. However, you can update the formula and add another parameter to the RVI to control the number of bars used by the standard deviation.


Share This ->
Share |


You have to log in to bookmark this object
What is this?
Additional Information




Type: Trading Indicator

Object ID: 415


Country:
All

Market: All

Style:
Technical Analysis

Reviews
You must log in first

Join now
and get instant access for free to the trading software, the Sharing server and the Social network website.
Click here


Related objects
Show All
ToNumeric (by Azouz, uploaded few weeks ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 3 Notes Report an item
Number of bars up to the end of the month (by Brian Brown, uploaded several months ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 40 Notes Report an item
New Darvas Box - Darly Guppy (by QuantShare, uploaded several months ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 29 Notes Report an item
Polarized Fractal Efficiency (by MikeMM, uploaded several months ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 22 Notes Report an item
End of Month (by Brian Brown, uploaded several months ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 30 Notes Report an item
Candle Pattern Forecast (by Kyra Packens, uploaded several months ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 43 Notes Report an item
Market trading rules (by bug man, uploaded several months ago)
No notes

Rate an item Rate an item Rate an item Rate an item Rate an item Number of downloads 20 Notes Report an item
Number of reviews
Click to add a review
Average rate
Click to rate this item
Number of times this object was downloaded
Number of rates the current object received
Report an object
if you can't run it for example or if it contains errors
Click to report this object

Technical Analysis


Fundamental Analysis



Random Blog Posts

New features in QuantShare - Trading Software

Technical Analysis Using Multiple Timeframes

Short Index - Part 2

Short Index - Part 1

Trend Following and Moving Averages

Put-Call Ratio for Individual Stocks

Historical Market Data

What's new in this trading software?

Show All

Number of reviews
Click to add a review
Average rate
Click to rate this item
Number of times this object was downloaded
Number of rates the current object received
Report an object
if you can't run it for example or if it contains errors
Click to report this object






QuantShare
Product
QuantShare
Features
Create an account
Affiliate Program
Support
Contact Us
Trading Forum
How-to Lessons
Manual
Company
About Us
Privacy
Terms of Use

Copyright 2019 QuantShare.com
Social Media
Follow us on Facebook
Twitter Follow us on Twitter
Google+
Follow us on Google+
RSS Trading Items



Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.