RELATIVE VOLATILITY INDEX by Technical Analysis, Inc.
The relative volatility index (RVI) is a modified form of the relative strength index (RSI). The original RSI
calculation separates one-day net changes into positive closes and negative closes, then smoothes the data
and normalizes the ratio on a scale of zero to 100 as the basis for the formula. The RVI uses the same
basic formula but substitutes the 10-day standard deviation of the last 10 days' closing prices for either
the up close or the down close. The goal is to create an indicator that measures and reports the general
direction of the volatility.