What is relative volatility index indicator.
Relative volatility index ik volatility indicator hai jo trader ko ye information deta hai kay chart ma volatility ki direction kis side par hai. Relative volatility index relative strength idex kay bhot similar work karta hai es ma ik chez extra hoti hai jis ko ham standard deviation kay name sy janty hain. Es ka best use ye hai kay es indicator ko kisi momentum indicator kay sath conjuction ma use karna chahe. Es kay elawa es indicator ko trend finder indicator kay sath bi use kiya ja sakta hai jis ki base par ham market trend ko find karny ma kamyab ho sakty hain.
Method of calculating relative volatility index.
Relative volatility index ko find karny kay laye pehle standard deviation ka sahara lena hota hai. Es kay laye daily high or daily low ka standard deviation find karna hota hai. Es kay bad exponential moving average price line ko smooth kar deti hai. Es kay bad ye indicator rvi ko find karta hai. RVI calculation ko find karny kay laye different possible value ko use kiya jata hai jin ko ham discuss kar lety hain. Market ka opening point, lower point, higher point or closing point. Es indicator ki confirmation bi es he sy ki ja sakti hai so traders ko chahe kay wo confirmation kay laye other indicators ko use kar kay time waste na karyn or small lot sy es indicator par trade ko set karyn.
How to interept and use RVI as trader best companion.
Relative volatility index ik bhot simple but useful technical tool hai. Ye na serf stand alone indicator kay tor par develop kiya giya hai balky esko comfirmation indicator kay tor par bi use kiya ja sakta hai. Ye traders ko bhot useful information provide karta hai. RVI indicator ki range 00 sy 100 kay bech ma move karti hai or ye percentage ki sorat ma hoti hai. Jb rvi ki vale 50 sy higher hoti hai to ham keh saktyn hain kay market ma volatility up side par hai or jb es ki value 50 sy below hoti hai to es ka matlab ye hota hai kay es time par volatility lower side par hai. Pehle condition ma trader ko buy ki or dosri condition ma trader ko sell ki trade ko open karna chahe. Es kay sath sath es indicator ko potential entery signal kay tor par bi use kiya ja sakta hai. Agr es ki value 40 sy nechy ho to ye strongly sell entry ko recommend karta hai. Jb es ki value 60 sy above ho to ye trader ko buy ki trade ko open karny ka signal farham karta hai.
