RAVI � VertexFX Indicator

[NCDindia]

RAVI is a simple VertexFX client side VTL indicator but innovative one based on Simple Moving Averages. The idea behind RAVI is that faster SMA responds quicker to market changes compared to slower SMA. It is calculated by dividing the difference between the faster SMA and the slower SMA by the longer SMA.
When markets are rising, the difference between faster and slower SMA increases quickly and hence RAVI rises. When the market reaches saturation top, this difference starts reducing and the RAVI peaks out - signaling a market top. Similarly, when the market is falling, the difference between the faster and slower SMA increases quickly in negative area and hence RAVI falls into negative zone. When the market bottoms out, this difference starts reducing and RAVI bottoms out - signaling a market bottom.
BUY - Place Buy position when RAVI indicator has bottomed out below zero line and is raising for at least 2 candles.

SELL - Place Sell position when RAVI indicator has topped out above zero line and is falling for at least 2 candles.