It is developed on the other principle, not on ADX’s. Chand suggests 13-weeks SMA as a basis of the indicator. It represents quarter (3 months = 65 working days) behavior of the market populance about price. The short average is 10% of the long one and is roughly equal to seven.
T. Chand recommends the following information lines for the indicator: plus-minus 0.3% or 0.1% (depending on the market). There is a belief that the up trend began if the indicator crosses the upper information line bottom-up. And there is also a belief that the down trend began if the indicator crosses the lower information line from top downward. The trend is considered as continuing as long as the RAVI line grows. The down trend – as long as the RAVI line falls. If the indicator turns back to the zero line it means that the trend is over and the channel has began. But if the indicator turns back again not passing between the information lines it means that the trend has resumed.
The indicator in itself is very simple and is almost identical to the Price Oscillator and MACD. The unique thing is the usage of the conergence-divergence rate indicator as a trend pointer, paying attention to the divergence exactly and not to the averages intersection.
If we consider the method of ADX drawing then we can note that the indicator has two smoothings. RAVI has one smoothing. This makes the indicator more sensitive, and it alerts about the beginning and the end of the trend earlier than the 18-days ADX.
MT4 Indicator Download – Instructions
[post-title] is a Metatrader 4 (MT4) indicator and the essence of the forex indicator is to transform the accumulated history data.
[post-title] provides for an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can assume further price movement and adjust their strategy accordingly.
How to install [post-title].mq4?
- Download [post-title].mq4
- Copy [post-title].mq4 to your Metatrader Directory / experts / indicators /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your indicator
- Search “Custom Indicators” in your Navigator mostly left in your Metatrader Client
- Right click on [post-title].mq4
- Attach to a chart
- Modify settings or press ok
- Indicator [post-title].mq4 is available on your Chart
How to remove [post-title].mq4 from your Metatrader 4 Chart?
- Select the Chart where is the Indicator running in your Metatrader Client
- Right click into the Chart
- “Indicators list”
- Select the Indicator and delete
MT4 Indicators Download below: