Range Action Verification Index (RAVI) Indicator

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The Range Action Verification Index (RAVI) is a useful indicator developed by T. Chande. The principle of its generation is different from the one used to build the indicator. Chande suggested a 13-week Simple Moving Average (SMA) as a basis of the RAVI indicator, which represents quarter states of the market participants' mood concerning prices. The short average that includes the RAVI indicator comprises 10% from the long one and is equal to seven in rough figures.

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The RAVI indicator can be expressed as a function of the SMA. Chande suggested the following reference lines for the RAVI indicator: plus-minus 0.3% or plus-minus 0.1% is selected depending on the market peculiarities. When the RAVI indicator line crosses the reference line upwards, this is a signal for a new uptrend. When the indicator crosses its reference line downwards, this is a signal for a downtrend. A trend is most likely to continue its growth, while the RAVI indicator line is rising, and it will probably continue its fall, while the RAVI line is going down.

Reversal of the RAVI indicator to the zero line shows that a trend is over and a channel is appearing. But repeated reversal of the indicator without entering into a reference lines range shows that a trend is resumed.

The RAVI indicator is quite simple and is similar to the price oscillator indicators. The unique feature of RAVI is that it uses the movement convergence-divergence as a trend indicator considering divergence (not crossing) of the averages.

The RAVI indicator has only one smoothing, therefore, it is more sensitive and can signal about the beginning or end of a trend earlier than other indicators.

- Simple Moving Average;
- Exponential Moving Average;
- Smoothed Moving Average;
- Linear Weighted Moving Average;
- JMA Adaptive Average;
- Ultralinear Smoothing;
- Parabolic Smoothing;
- Tillson's Multiple Exponential Smoothing;
- Smoothing with the use of Tushar Chande's algorithm;
- Smoothing with the use of Perry Kaufman's algorithm.

It should be noted that phase type parameters for different smoothing algorithms have completely different meaning. For JMA, it is an external phase variable changing from -100 to +100. For T3, it is a smoothing ratio multiplied by 100 for better visualization, for Vidya, it is a CMO oscillator period, and for AMA, it is a slow EMA period. In other algorithms, these parameters do not affect smoothing.

The indicator uses SmoothAlgorithms.mqh library classes. This indicator was first implemented in MQL4 and published in 2026.

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#property link "https://robotfx.org"
#property description "this code is educational. feel free to use, modify and upgrade as you wish. visit robotfx.org for professional trading tools"
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• This tool is provided for educational and testing purposes only.
• Past performance does not guarantee future results.
• Trading involves substantial risk of loss. Use on a demo account first.
• Results may vary depending on market conditions, broker, and settings.
• We recommend thorough backtesting and forward testing before using with real funds.