Trading Indicators: Ravi indicator

Trading Indicators: Ravi indicator

Analysis and explanation on the functions and use of the indicator called RAVI from English Online Trading Range Action Verification Index.The indicator was developed Ravi Tushar Chandle and displays a chart with values from 1 to 7, this indicator behaves all'Adx very similar, except that it uses two medium smoothing, unlike other whose use it only involves.
The main function of ravi indicator is whether we are in the presence or absence of a market trend.
To understand whether we are witnessing a trend, we must look at the chart and see if the line of the indicator is above the value 3 and continue to grow upwards, in the opposite situation we are facing a range market.
The indicator was developed on a Sma 13 periods is good advice and set weekly (weekly).
Function for the calculation:
ABS (1000 (mov (Pr, ShortMA, S)-mov (Pr, Longmire, S)) / mov (Pr, Longmire, S));
Here's a screenshot of the indicator Ravi: