RAVI indicator - better than MACD
RAVI indicator - this is analogous to MACD oscillatorwhich has its own peculiarities. It is based on the difference of two moving averages calculated as a percentage.
Indicator formula: RAVI = 100*(SMA(7) - SMA(65)) / SMA(65)
In the RAVI indicator it is recommended to set the levels -0.3% and +0.3% or -0.1% and 0.1%.
How to use the RAVI indicator
- When the histogram crosses the upper level from bottom to top, it is considered that the up trend has begun.
- When the histogram crosses the lower level from top to bottom, it is considered that the downward trend has begun.
- The up trend is considered to persist as long as the RAVI line continues to rise, the down trend, respectively, as long as the RAVI continues to fall.
- Bullish trend areas are highlighted in green, and bearish trend areas are highlighted in red. The out-of-trend or uncertainty areas are grayed out. The colors can be changed at the user's request.
- As soon as the indicator turns to the zero line, it is considered that the trend has stopped, the channel has started. But if the indicator turns around again without entering the gap between the set levels, it is considered that the trend has resumed.
A unique feature RAVI indicator is the use of the rate convergence-divergence indicator as a trend indicator, paying attention to the divergence, not the intersection moving averages.
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