RVI Meaning and
Definition
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RVI is an acronym that stands for Range Variation Index, and it is a technical indicator used in financial markets analysis. The Range Variation Index is a measurement tool that helps traders and analysts assess the price volatility and trending strength of a particular financial instrument or market over a given period of time.
RVI is calculated by comparing the standard deviation of the price's range to the standard deviation of the price's close, and then multiplying the result by 100. The formula is as follows:
RVI = (Standard Deviation of Range / Standard Deviation of Close) * 100
The RVI is primarily used to identify potential trend reversal points. When the RVI value increases, it indicates an increase in volatility and suggests that the instrument is more likely to experience a change in trend direction. On the other hand, a decreasing RVI value indicates a decrease in volatility and implies that the current trend is likely to continue.
Traders and analysts interpret RVI values by comparing them to specific thresholds or by looking for patterns and divergences. For example, crossing above or below certain levels may signal buy or sell signals, respectively.
It is important to note that the Range Variation Index is just one of many technical indicators that can be used in market analysis. It should be complemented with other tools and analysis techniques to make informed trading decisions.
Common Misspellings for RVI
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