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By technical analysis we should basically understand employment of price chart (and results of its math interpretation) for further market and price forecast. Technical analysis rests upon repeated nature of market and implies that ups and downs of currency quotations on charts are rotated according to certain time periods. An advantage of technical analysis is its universal application: with its help one can research any financial contract for any period of time. The market accounts for everything. That means that any event, which could affect price behavior is already accounted by market and is reflected on the price chart. This proposition means that all factors impacting the price will be definitely reflected in its behavior, therefore, it is required to monitor quote graph.
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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