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Chande's Range Action Verification Index (RAVI) |
  
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Chande's Range Action Verification Index (RAVI) |
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Overview
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).
Interpretation
If the RAVI is over 3% the market is said to be trending.
Construction
1. Click the Ribbon>Technical Analysis menu>Indicators group>Indicator Builder command>Indicator Builder window's [New] button
2. In the General tab, type the following text for each field:
Name: Chande's Range Action Verification Index
Function Name Alias: vt_RAVI
Label Mask: Chande's Range Action Verification Index (%pr%,%ShortMA%,%LongMA%) | %RAVI%
Placement: New Frame
Data Inspection Alias: Chande's RAVI
3. In the Input Variable(s) tab, 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 Variable(s) tab, 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 tab, create the following lines:
[New] button...
Value: +3.0000
Color: red
Width: thin
Type: dashed
6. In the Formula tab, 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.