RAVI (Range Action Verification Index) - MetaTrader 5 Script | Forex Indicators Download - MT4/MT5 Resources

This indicator represents the relative convergence/divergence of the moving averages of financial assets and increases by a factor of one hundred. It is based on a different principle than ADX. Chande recommends using the 13-week SMA as the basis for this indicator. It represents the sentiment of market participants towards prices on a quarterly basis (3 months = 65 working days). The short-term moving average accounts for 10% of 1, rounded to 7.

Tushar Chande recommends the following reference line for the RAVI indicator: plus or minus 0.3% or plus or minus 0.1% (depending on the market). An uptrend is considered to have started when the indicator crosses the upper reference line upwards. A downtrend is considered to have started when the indicator crosses the lower reference line downwards. As the RAVI line grows, the uptrend is believed to be continuing. were trending downward, while RAVI fell. Once the indicator returns to the zero line, the trend is considered to have ended and the channel is considered to have begun. But if the indicator reverses again without entering the gap between the reference lines, the trend is considered to have resumed.

In essence, the proposed indicator is very simple and almost identical to the price oscillator and MACD. It is unique in using price convergence-divergence values ​​as trend indicators, focusing on divergences rather than moving average crossovers.

After checking the drawing method of АDХ, it can be said that this indicator has two smoothings. RAVI has a smoothing process. This makes the indicator more sensitive. Using the specified value, it will warn about the start and end of the trend 18 days before ADX.

The indicator uses SmoothAlgorithms.mqh library class (copy it to \MQL5\Include). The use of the class "Average price series for intermediate calculations without using additional buffers" is described in detail in the article.

The indicator was originally written in MQL4 and first published in the code base on February 15, 2008.

Figure 1. RAVI indicator

Attachment download

📎 SmoothAlgorithms.mqh (130.2 KB)

📎 RAVI.mq5 (8.83 KB)

Source: MQL5 #16067