Price Oscillator & Relative Vigor Index

by | Aug 23, 2020

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The crypto markets’ bizarre aspects have made technical analysis and charting invaluable trading tools for crypto traders as they accommodate to predict trend, momentum, and support & resistance. This blog will discuss two advanced popular technical analysis methods, Price Oscillator & Relative Vigor Index, used to analyze crypto markets like BTC and ETH.

Price Oscillator

The Price Oscillator is applied to estimate the momentum based on two MA, the “active” and the “slow” MA, therefore thought to be the equivalent to the MACD indicator. Considering that the Price Oscillator is similar to that of a MACD and depends on two MAs, it, hence, comprehends that the discrepancy between the two MA divided by the slow-MA multiplied by 100 will give the Price Oscillator formula.

Recognizing that the Price Oscillator is dependent on the centerline and having an uncertainty at limit zero, this will have the trader conclude that when the Price Oscillator trajectory increases over zero, it will indicate that an upwards trend; therefore, the crypto trader should be trading in an upwards direction in the market. On the contrary, when the Price Oscillator curve drops below zero, it will indicate to the trader that there is a downward market, thus having the crypto trader trading in a downwards trend.

Relative Vigor Index

Price Oscillator & Relative Vigor Index
Price Oscillator & Relative Vigor Index on HyperTrader

The Relative Vigor Index is a well-known member of the oscillator group of technical indicators. Even though the originator of the RVI is unknown, the RVI form is comparable to the Stochastic indicator, but that the closing price is associated with the open price rather than the low price for the specific period. Crypto traders frequently assume the RVI to indicate trend variations and improve in a Bullish market when the market’s drive is on a surge and closing prices tops opening prices. Market variations tend to be more fluid such that divergences among the index and price-performance have more significance.

The RVI indicator is categorized as an oscillator because of the prices shift between computed positive and negative price values. The RVI indicator chart t has a centerline at zero with the RVI and its associated weighted MA fluctuating about it. Significant rates are defined as a robust overbought market condition or means to a crypto trader a selling sign, and low prices values indicate a stable oversold market condition or means to a crypto trader a buying signal.

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Head of Content Marketing @ HyperLinq. His love for Chai and mountains precedes everything. Often wonders about things like, "why $1 earned through leverage feels 100x better than $1 earned selling your time?"
Head of Content Marketing @ HyperLinq. His love for Chai and mountains precedes everything. Often wonders about things like, "why $1 earned through leverage feels 100x better than $1 earned selling your time?"

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