Forex encyclopedia

You've probably once thought: "Why are prices moving in graphics?" There is a currency vendor, and there is the buyer of the same currency, they make a bargain and everybody is happy. Who then needs to grow or fall in price then? After all, when you buy a bread at the store, such an action does not allow the price of bread to change. Maybe it's a global financial conspiracy or brokers hiding something from us? Undoubtedly, you've also heard an old, good tune-up: Trend is your friend. Have you ever wondered why Forex strategies based on trend tracking work and why trend-based marketing is so universally recognized and popular? The reason is simple. The trend is likely to continue and go on. Once the movement has begun, it is easier for it to continue the movement in the direction than to stop, let alone reverse. This is one of the axioms in the treasure. We give this expression a variety of definitions, trend, momentum or tendency. However, what is the real reason for this? What's really going on in the market and what makes the price move after the trend?
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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