Relative Volatility Index (RVI )

The RVI or relative volatility index is one of several stock market indicators which measures the direction of price volatility. It differs from the RSI (relative strength index) in just one respect: it substitutes the standard deviation over the past 10 days for the daily price change.

The RVI measures the variance of a stock's closing price from its average over the past 10 days. The measurements can range from 0 to 100.

The RVI was designed by Donald Dorsey to provide confirmation for stock trading signals. It is most commonly used along with moving average stock signals.

Using the RVI

An RVI reading between 50 and 60 is giving an entry signal. A reading from 50 to 40 is giving an exit signal.

The RVI may be used in the same way as the relative strength index.

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