RAVI Indicator for MetaTrader 4 – [TFlab] – Free Download

The RAVI indicator is one of the trend analysis tools available on the MetaTrader 4 platform, whose primary function is to detect structural changes in the market.

This oscillator operates based on the relative difference between two Simple Moving Averages (SMA) of different periods, calculated as a percentage relative to price.

RAVI Indicator Table

The general specifications of the Range Action Verification Index (RAVI) indicator are presented in the table below.

RAVI at a Glance

The Range Action Verification Index (RAVI) is plotted as a waveform line oscillating around the zero axis. This line reflects the strength and direction of market trends, and its crossover through the zero level signals a phase shift in the market from bullish to bearish or vice versa.

RAVI in a Bullish Trend

In a 30-minute chart of the EUR/USD currency pair, when the RAVI signal line crosses the zero level from below to above, this signals the start of a new uptrend or strengthening of an existing bullish trend.

In such cases, if the price also breaks a resistance level or reversal patterns are observed in Price Action structures, this confirms the signal generated by the RAVI oscillator.

RAVI in a Bearish Trend

The chart below displays the gold spot price index (XAU/USD) in a 1-minute timeframe.

When the RAVI signal line crosses from above to below the zero line, it indicates the end of a bullish trend and the beginning of a downtrend.

RAVI Indicator Settings

The RAVI Indicator Settings Panel (Range Action Verification Index) is shown in the image below:

• Period1: First Period
• Period2: Second Period

Conclusion

The RAVI Indicator is a tool for identifying market trends, detecting new movement phases, and providing warnings in overbought or oversold zones.

The highest accuracy and effectiveness of the RAVI indicator is achieved when it is used as a confirmatory tool in combination with Price Action analysis and other technical indicators such as RSI Indicator, MACD, or Exponential Moving Averages (EMA).