Relative Vigor Index Z-Score

2024年11月30日

The Relative Vigor Index with Z-Score (RVIZ) is a combined technical analysis tool that helps traders assess the strength and volatility of price movements relative to a market's recent price behavior. This indicator incorporates two distinct concepts:

Relative Vigor Index (RVI):
The RVI is a momentum indicator that measures the strength of a trend by comparing the current price range (high vs low) with the opening and closing prices. The RVI is primarily used to determine if the current price movement is "vigorous" (strong) or weak, and it is plotted as a line that oscillates around a zero baseline.

Z-Score:
The Z-score is a statistical measurement that shows how many standard deviations the RVI is from its historical mean over a given period. This helps identify if the current RVI value is unusually high or low relative to past values, providing a normalized view of the indicator's extremity.

The combination of the RVI and Z-Score offers a more nuanced view of market momentum and volatility, allowing traders to assess both the strength of the current trend and its statistical significance.

Inputs:
Length (RVI Length):
The number of bars used to calculate the Relative Vigor Index. A larger length (e.g., 20 or more) results in a smoother RVI, while a shorter length makes the RVI more sensitive to short-term price changes.

Z-Score Length:
The number of bars used to compute the mean and standard deviation of the RVI for the Z-score calculation. This length determines how "historically" the Z-score will assess the RVI's behavior.

Offset:
Allows users to shift the indicator plot to the left or right for visual adjustment, particularly useful in certain charting setups.