RAVI Indicator works very similarly to the Price Oscillator and the MACD. The only difference is about employing the exponent of convergence-divergence of the rate to identify the trend, taking into consideration the divergence between the moving averages rather than the crossover.
This indicator is calculated by the percentage of two different periods moving averages:
RAVI = 100*(SMA(7) – SMA(65)) / SMA(65)
- File: RAVI.mq4
- Size: 2 Kb
RAVI Modified Version
There are two levels set at plus/minus 0.3 percent, used to recognize the current trend in the market. When the indicator crosses +0.3 line upwards it is assumed that an uptrend has begun. When the indicator crosses -0.3 line downwards it is assumed that a downtrend has started.
- Green bars = bullish trend,
- Red bars = bearish trend;
- Grey bars = ranging market.
- File: RAVI mod.mq4
- Size: 3 Kb