Chande's Range Action Verification Index (RAVI)

 

 

Developed by Tushar Chande, The Range Action Verification Index (RAVI) indicator is used to help identify whether the market is trending (similar to the ADX).

 

 

 

If the RAVI is over 3% the market is said to be trending.

 

 

1. Navigator Window>Tools>Indicator Builder>[New] button

 

2. In the Indicator Bookmark, type the following text for each field:

 

Name: Chande's Range Action Verification Index

Short Name: vt_RAVI

Label Mask: Chande's Range Action Verification Index (%pr%,%ShortMA%,%LongMA%) | %RAVI%

Placement: New Frame

Inspect Alias: Chande's RAVI

 

3. In the Input Bookmark, create the following variables:

 

[New] button...

Name: Pr        

Display Name: Price

Type: price

Default: close

 

[New] button...

Name: ShortMA        

Display Name: Short Periods

Type: integer

Default: 7

 

[New] button...

Name: LongMA        

Display Name: Long Periods

Type: integer

Default: 65

 

4. In the Output Bookmark, create the following variables:

 

[New] button...

Var Name: RAVI

Name: (RAVI)

Line Color: dark green

Line Width: slightly thicker

Line Type: solid

 

5. In the Horizontal Line Bookmark, create the following lines:

 

[New] button...

Value: +3.0000

Color: red

Width: thin

Type: dashed

 

6. In the Formula Bookmark, copy and paste the following formula:

 

RAVI:= abs(1000*(mov(pr,ShortMA,S)-mov(pr,LongMA,S))/mov(pr,LongMA,S));

 

7. Click the "Save" icon to finish building Chande's RAVI indicator.