Chande’s RAVI Indicator - Part I

Saturday 5 July 2008 @ 1:07 pm

Summary

This is Tushar Chande's RAVI Indicator (Part I) from his book "Beyond Technical Analysis"

Screen Shots

Usage

Chandes RAVI indicator is a great trending indicator for stocks and equities. Tushar Chande describes a 3% line, that if the indicator crosses over this line, it is considered trending, either in a bullish or a bearish manner. The RAVI indicator doesn't know the direction of the trend (as is common of most trending indicators), but can tell you that it is a trend. I've found that for Forex and Currencies, 3% is too high, so I've added an input variable to the RAVI Indicator so that you can change the percentage value. I've found 1 1/2 - 2 % to be very good indicator values for the RAVI.