The Range Action Verification Index (RAVI) indicator for MetaTrader4 was developed by Tushar Chande in the late 1990s, in a bid to determine the strength of a trend. The RAVI indicator computes the percentage difference between the most recent prices and older prices.
The short Simple Moving Average is used to represent the most recent prices, while the long Simple Moving Average is used in depicting the longer time frame. The original creator of the Range Action Verification Index (RAVI) indicator recommends plus-minus 0.3% or 0.1% (a subject on the market) as the indicator’s information lines.
The RAVI indicator deploys two simple moving averages in its calculation and deploys the absolute value of the result making sure all its values are positive. The “0.3” level is an information line for this indicator and if by any means the indicator surges above the “0.3” level, it is assumed that price is in a rising trend. However, if the FAVI indicator pushes below the “-0.3” level, price is said to be in a downward trend.
As long as the RAVI histogram continues to rise, the trend is said to be continuing. It is assumed that the trend has ended as soon as the RAVI indicator begins to turn back to the “0” line. If the indicator recoils without breaking the “0” level, then we can assume that the current trend is being renewed.
The colors of the histogram are also important, as the green-colored histogram is indicative of a bullish trend, while the red-colored histogram signifies a bearish trend. The grey-colored histogram defines regions of uncertainty. The colors can be tweaked to suit the trader’s preference.
Set up RAVI (Range Action Verification Index)
- Obtain RAVI (Range Action Verification Index) – indicator for MetaTrader 5.mq5
- Copy RAVI (Range Action Verification Index) – indicator for MetaTrader 5.mq5 to your Metatrader 5 Listing / consultants / indicators /
- Begin or restart your Metatrader 5 Shopper
- Choose Chart and Timeframe the place you need to take a look at your mt5 indicator
- Search “Custom Indicators” in your Navigator principally left in your Metatrader 5 Shopper
- Proper click on RAVI (Range Action Verification Index) – indicator for MetaTrader 5.mq5
- Connect to a chart
- Modify settings or press okay
- Indicator RAVI (Range Action Verification Index) – indicator for MetaTrader 5.mq4 is on the market in your Chart
Uninstall process of RAVI (Range Action Verification Index) – indicator
- Choose the Chart the place is the Indicator working in your Metatrader 5 Shopper
- Proper click on into the Chart
- “Indicators list”
- Choose the Indicator and delete