Relative Volatility Index (RVI) – FX Replay Guide

The Relative Volatility Index (RVI) in FX Replay measures volatility direction, not price direction. It tells you whether volatility is picking up (potential momentum shift) or fading (potential trend exhaustion). Unlike standard momentum indicators, the RVI is based on standard deviation, making it a powerful tool for gauging strength behind price moves.

What the RVI Tells You

• Above 50 = Bullish volatility — market is becoming more active on the upside
• Below 50 = Bearish volatility — activity is slowing or shifting downward
• RVI is ideal for confirming momentum in fast or choppy conditions

How to Use the RVI in FX Replay

➤ Add It to Your Chart

• Go to Indicators
• Search for “Relative Volatility Index”
• Apply it to your chart
• You’ll see two lines: the RVI line and a smoothed signal line for crossover analysis

➤ Look for These Key Setups

• Break Above 50 or 60 = Possible bullish continuation or entry
• Drop Below 50 or 40 = Possible bearish momentum or exit setup
• Crossovers:
  • RVI line crosses above the signal line = potential long setup
  • RVI line crosses below the signal line = potential short setup

➤ Combine with RSI or MACD

• Use RVI to validate conditions shown by RSI
  • e.g., RSI oversold + RVI rising = strong buy confirmation
• Can also confirm breakouts or exhaustion when paired with MACD histogram changes

Backtest & Optimize in FX Replay

• Use historical charts to test different look-back settings (e.g., 10, 14, 20)
• See how different settings affect RVI sensitivity
• Adjust signal thresholds based on volatility of your chosen instrument
• Overlay with moving averages or trendlines for layered confluence

Pro Tip

In FX Replay, the RVI is best used as a momentum confirmation tool — not a standalone signal.
Focus on RVI crossovers and whether the indicator is sustaining above or below the 50 line in context with price action or trend structure.