Relative Vigor Index (RVI) calculation is based on the idea that in a rising market the closing price is usually higher than the opening price, and on the bearish market the closing is usually below the opening price.  RVI = (CLOSE — OPEN) / (HIGH — LOW)

PowerRVI Divergence Generation III Metatrader Indicator shows fractal divergence between  PowerRVI indicator and price.

Trading rules:

We will accept up arrow, if market condition – up trend or flat
We will accept down arrow, if market condition – down  trend or flat

Respectively

We will ignore up arrow, if market condition – down trend
We will ignore down  arrow, if market condition – up trend

Best way to determine market conditions is using multi-timeframe indicator.   If we put the standard RVI indicator on the same currency but different timeframes, we can observe "the behavior of different groups of traders." If the  indicator direction at various timeframes is  not identical, it is unlikely the beginning of a trend. If the indicators on different timeframes begin to align in one direction, it is likely the beginning of a trend. But if we wait until all indicators   show the same  direction, we can  miss the entry point.




Pic. 1     Zone between blue lines - RVI Up direction,
               Zone between red lines - RVI Down direction



For example  we are looking PowerRVI Divergence  indicator signals on the timeframe M15
In this case, we must consider the higher timeframes M30, H1, H4, D1

Up Trend will beginning when:
RVI D1 –UP
RVI H4 – UP
RVI H1 –UP
RVI- m30 – Down
PowerRVI Divergence – up arrow

Down Trend will beginning when:
RVI D1 –Down
RVI H4 – Down
RVI H1 – Down
RVI- m30 – Up
PowerRVI Divergence – Down  arrow

Flat:
D1 – UP (Down)
H4 –Down (Up)
H1 –Up (Down)
M30 –Down (up)
M15 – we will accept up and down arrows


We've described only strong signals.
We can use i-Trend indicator   or HeikenAshi Multi-TimeFrame Indicator instead RVI indicator

and Stochastic Divergence Indicator , CCI Divergence Indicator or MACD Divergence Indicator instead PowerRvi Divergence
The choice of indicator depends on your trading preferences.

BJF Trading Group inc.
iticsoftware.com