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Ravi Indicator

The Ravi Indicator is a technical analysis tool used to identify trends in financial markets.  Traders should use other indicators, such as volume and price patterns, to confirm signals and make informed trading decisions.

The Ravi Indicator consists of two moving averages – a short-term moving average and a long-term moving average – plotted on a single chart.

The Ravi Indicator is used to identify changes in market trends. When the signal line – the histogram – goes above the zero line, it suggests that the short-term trend is becoming bullish.

Ravi-Indicator-Chart-Explanation

Conversely, when the signal line goes below the zero line, it suggests that the short-term trend is becoming bearish.

Traders can also use the Ravi Indicator to identify overbought and oversold conditions in the market.

When the signal line reaches the upper threshold, it is considered overbought, and traders may consider selling their positions.

When the signal line reaches the lower threshold, it is considered oversold, and traders may consider buying.

The Ravi Indicator can be applied to various timeframes, but it is generally more effective on longer timeframes. This is because the indicator can produce false signals on shorter timeframes due to market volatility.

Buy Signal Generation With Ravi Indicator

To generate a buy signal with the Ravi Indicator, traders should watch for the signal line to cross above the zero line. This crossover suggests that the short-term trend is becoming bullish, which may signal a buying opportunity.

Ravi-Indicator-Buy-Signal

Another way to generate a buy signal is to look for a bullish reversal when the signal line reaches the bottom of the indicator.

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Sell Signal Generation With Ravi Indicator

To generate a sell signal with the Ravi Indicator, traders should watch for the signal line to cross below the zero line. This crossover suggests that the short-term trend is becoming bearish, which may signal a selling opportunity.

Ravi-indicator-Sell-Signal

As the signal line reaches the peak of the indicator, another technique to get a sell signal is to watch for a bearish reversal.

NameRavi Indicator
Size KB
Top BrokerExness, RoboForex
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