The Relative Vigor Index (RVI) for Metatrader 4 can be classified as a momentum indicator that measures the strength of the trend.
RVI is a versatile technical indicator that can be used to identify divergence between price and RVI, as well as to generate a simple crossover signal.
The indicator displays a separate MT4 chart window, featuring two colored signal lines.
Buy & Sell Trade Example
- Open a buy trade when both RVI signal lines cross the 0.00 level bottom-up.
- Open a sell trade when both RVI signal lines cross the 0.00 level top-down.
The indicator works equally well on all currency pairs (majors, minors and exotic) and shows promising results if used correctly.
Free Download
Download the “Relative vigor index.mq4” indicator for MT4
Indicator Chart (EUR/USD Daily)
The picture below shows the Relative Vigor Index mt4 indicator in action on the trading chart.
Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method while trading with the Relative Vigor Index Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: RVI
Does the indicator repaint? No.
RVI + Reversal Stop Signal Forex Scalping Strategy
This day‑trading scalper strategy uses the Relative Vigor Index Indicator MT4 and the Reversal Stop Signal MT4 Indicator.
It’s designed for short intraday trades on fast time‑frames (1‑minute, 5‑minute, or 15‑minute charts) and aims to capture quick moves by aligning momentum and trend‑reversal cues.
How It Works
The RVI measures momentum by comparing closing and opening prices relative to the price range and oscillates around the zero line.
In our version, we open a trade when both RVI signal lines cross the 0.00 level (bottom‑up for buy, top‑down for sell).
The Reversal Stop Signal indicator provides trend bias via coloured bullets and lines: green bullet + green line indicates bullish trend, red bullet + red line indicates bearish trend.
By waiting for trend bias confirmation, then momentum crossing at zero, we improve signal reliability.
Buy Entry Rules
- The Reversal Stop Signal indicator must show a green bullet and a green trend‑line (indicating a bullish trend).
- In the RVI panel, both signal lines cross from below up through the 0.00 level (i.e., both lines move bottom‑up across zero).
- Once both conditions appear, enter a buy trade on the next candle.
- Place a stop loss just below the recent minor swing low or just below the candle that triggered the signal.
- Set take profit at a small fixed pip‑target (e.g., 8‑20 pips) or use a 1:1.5 risk‑to‑reward ratio, whichever occurs first.
Sell Entry Rules
- The Reversal Stop Signal indicator must show a red bullet and a red trend‑line (indicating bearish trend).
- In the RVI panel, both signal lines cross from above down through the 0.00 level (i.e., top‑down across zero).
- Once both conditions appear, enter a sell trade on the next candle.
- Place a stop loss just above the recent minor swing‑high or just above the candle that triggered the signal.
- Set take profit at a small fixed pip‑target (e.g., 8‑20 pips) or use a 1:1.5 risk‑to‑reward ratio, whichever occurs first.
Advantages
- Clear, simple rules: trend bias + zero‑level crossing makes the setup straightforward.
- Fast timeframe scalping allows multiple opportunities during the trading session.
- Combines momentum (via RVI crossing zero) with trend‑confirmation (via Reversal Stop Signal bullets/lines) to reduce false entries.
- Fixed small targets help limit exposure and allow quick exits.
Drawbacks
- Small pip‑targets require tight spread pairs and good execution; latency or slippage can hurt.
- In choppy or non‑trending market conditions, the strategy may generate many false signals (RVI crossing back and forth, bullets/lines flipping).
- Stop‑loss to profit ratio may still be unfavorable if the move doesn’t continue after entry (risk of frequent small losses).
Example Case Studies
Case Study 1
On the EUR/USD 5‑minute chart, the Reversal Stop Signal indicator shows a green bullet with a green line trending upwards.
At the same moment in the RVI window, both signal lines cross up through the 0.00 level.
A buy trade is taken at 1.1105, stop loss placed at 1.1095 (10 pips risk), and take profit set at 1.1120 (15 pips target = 1.5× risk).
The trade reaches the target within 20 minutes, illustrating how the trend‑confirmed momentum entry can work.
Case Study 2
On the GBP/USD 1‑minute chart during a rapid move, the Reversal Stop Signal turns red (red bullet + red line).
Shortly after, in the RVI, the two lines cross down through the 0.00 level.
A sell trade is entered at 1.2440, stop loss placed at 1.2450 (10 pips risk), and take profit at 1.2425 (15 pips target).
The move completes in under 10 minutes, showing how the setup can capture quick intraday momentum.
Strategy Tips
- Always ensure the trend bias is confirmed via the Reversal Stop Signal before acting on RVI zero‑line crossings.
- Use pairs with low spread and high liquidity (major Forex pairs) when scalping on 1‑5 minute charts.
- If the RVI lines cross but the Reversal Stop Signal hasn’t yet changed color, skip the trade — wait for full confirmation.
- Keep a trading log of all entries, stop losses, take profits, and reasons for each trade to assess performance and refine the strategy.
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Download the “Relative vigor index.mq4” indicator for Metatrader 4
