XRAVI - MetaTrader 5 Script | Forex Indicator Download - MT4/MT5 Resources - MetaTrader 5 Resources

Т developed a very useful indicator. Chande is called RAVI (Range Action Verification Index).

The principles of its generation are different from those used in constructing the Average ADX indicator. Chande recommends using the 13-week SMA as the basis for the RAVI indicator, which represents the quarterly state of market participants' sentiment toward prices (quarterly – 3 months or 65 working days). The short average including the RAVI indicator accounts for 10% of the long average, a rough figure equal to 7.

The RAVI indicator can be expressed in the following way:

Ravi = 100*(SMA(7) - SMA(65)) / SMA(65)

Where SMA (Period) - Simple Moving Average period equals period.

Chande recommends that the RAVI indicator reference line is as follows: choose plus or minus 0.3% or plus or minus 0.1% according to market characteristics. When the RAVI indicator line crosses the reference line upwards, it is a signal of a new uptrend. When the indicator crosses the reference line downward, it is a signal of a downtrend. When the RAVI indicator line rises, the trend is likely to continue growing; when the RAVI indicator line falls, the trend is likely to continue falling.

A reversal of the RAVI indicator to the zero line indicates that the trend has ended and a channel is emerging (Forex Channel Strategy). However, repeated reversals of the indicator without entering the reference line range indicate that the trend has resumed.

Chande's RAVI indicator is very simple. It is very similar to the Moving Average Convergence and Divergence and the price oscillator. RAVI is unique in that it uses movement convergence-divergence as a trend indicator, taking into account divergences (rather than crossovers) from the mean.

We know that ADX has two kinds of smoothing. There is only one Ravi. Therefore, RAVI with the previously mentioned values ​​is more sensitive and can signal the beginning or end of a trend much earlier than the 18-day ADX.

The indicator allows choosing a smoothing type from ten possible versions:

It should be noted that the Phase type parameters of different smoothing algorithms have completely different meanings. For JMA, it is an external phase variable that varies from -100 to +100. For T3, it is the smoothed ratio multiplied by 100 for better visualization; for VIDYA, it is the CMO oscillation period; for AMA, it is the slow EMA period. In other algorithms, these parameters do not affect smoothing. For AMA the fast EMA period is a fixed value, equal to 2 by default. For AMA, the ratio of raised powers is also equal to 2.

The indicator uses the SmoothAlgorithms.mqh library class (must be copied to terminal_data_folder\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 first implemented in MQL4 and released in the code base on February 15, 2008.

Attachment download

📎 smoothalgorithms.mqh (133.8 KB)

📎 xravi.mq5 (7.7 KB)

Source: MQL5 #516