Forex encyclopedia

Over decades, swing-trading term was only applied to the situation on the futures market, when trader had held open position for more than three days until received highest profit from cyclical price fluctuations both in sales and buying. This method is applicable today as well for any order that does not require an active intraday trading. But real opportunities of such an efficient trading art and such a generalized approach puts certain limitations. Under the conditions of an absolute liquidity of financial markets, trader can find excellent chances on daily, hours' or minute's charts.
Relative Volatility Index was elaborated by Donald Dorsey in 1993 and introduced in “ Technical Analysis of Stocks and Commodities” magazine. RVI is not a separate indicator; it is used to confirm signals and improve trading systems. This index measures forces of volatility movement. It does not duplicate signals of other oscillators, but just confirms them. RVI and Relative Strength Index are very much alike, but they additionally demonstrate highest and lowest points of price of standard deviation in a certain range. RVI is calculated in a way similar to calculation of RSI, but here 10-days' standard deviation of close price is taken instead of change of price.
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