What it does
The Relative Volatility Index (RVI, by Donald Dorsey) is built like RSI but substitutes standard deviation for price change: it measures the 10-period standard deviation of prices, assigns it to the up side when price rose and the down side when price fell, then smooths and normalizes to 0-100. It answers 'in which direction is volatility being spent?' rather than how far price moved. Readings above 50 mean volatility is concentrated in up moves; below 50, in down moves.
How to add it
Click Indicators (ƒx) in the header.
Search “Relative Volatility Index” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Dorsey's original rules: buy when RVI rises above 60, sell when it falls below 40 (with 50 as the directional divider).
- Use it to confirm other entry signals: only take longs from your primary system when RVI is above 50, shorts when below.
- If already long and RVI drops below 40, treat it as an exit or tightening signal; mirror at 60 for shorts.
- Divergence between RVI and price at new extremes flags a move whose volatility sponsorship is fading.
- It complements momentum oscillators well precisely because its input (volatility direction) is different from theirs.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| Length | number | 10 | 1–2000 |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| RVI | line | #7E57C2 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision (default 2 decimals), price-scale labels and status-line values are configurable at the bottom of the Style tab.
Reference levels
| Level | Value |
|---|---|
| Upper Band | 80 |
| Lower Band | 20 |
Level values, colors and line styles are editable in settings.
Tips
- Hide the study from the legend eye instead of removing it when you only want it out of the way temporarily.
- Merge multiple oscillators into one pane from the legend ⋯ menu to compare them on a shared axis.
- Double-click the plot to open settings directly, skipping the legend hover.
Watch out for
- It was explicitly designed as a confirmation filter, and traded standalone it whipsaws in quiet ranges.
- The double smoothing makes it slow around fast reversals, so confirmations arrive after part of the move is gone.