RVI Volatility Node
Relative Volatility Index - Directional Volatility
Relative Volatility Index (RVI) applies RSI logic to volatility instead of price. It measures the direction of volatility swings by comparing up-volatility to down-volatility. High RVI readings indicate expanding volatility on up bars; low readings show expanding volatility on down bars. Useful for identifying volatility directional bias.
Formula
Parameters
| Parameter | Default |
|---|---|
| period | 14 |
Use Cases
1. Volatility Bias Identification
High RVI = volatility expanding on up moves; Low RVI = expanding on down moves.
2. Trend Strength Assessment
RVI above 50 confirms bullish volatility bias; below 50 confirms bearish.
3. Divergence Trading
Price new high but RVI declining = potential exhaustion setup.
4. Extremes Identification
RVI > 80 or < 20 indicates extreme volatility directional bias.
Tips & Best Practices
📊 Read Like RSI
Use RSI interpretation: >80 overbought, <20 oversold, 50 is centerline.
⚡ Combine with Price
RVI directional bias usually aligns with price trend; divergence = reversal signal.
💰 Extreme Settings
When RVI >90 or <10, expect reversal or consolidation soon.
⚠️ Lag Consideration
RVI is lagging indicator; use with leading price action confirmation.
Related Indicators
Standard Deviation
Base volatility measurement RVI uses
RSI
RVI applies RSI logic to volatility instead of price
ATR
Average true range for volatility comparison
Bollinger Bands
Uses standard deviation for dynamic bands