Adaptive Range Action Verification Index for Trend Detection

Summary

The document describes the Range Action Verification Index, or RAVI, as a trend-versus-consolidation indicator built from short- and long-lookback moving averages. Its original description uses a 7-bar average and a 65-bar average, with a threshold above 3% interpreted as a trending market and lower values as consolidation.

This extended version adjusts its levels to the indicator's value, aiming to make the signal usable across different instruments and time frames. It suggests reading color changes to identify possible trend starts and re-entries. No calculation details for the adjustment, test results, or specific assets and time frames are provided. The original fixed threshold is described as arbitrary and potentially unreachable in some settings, so the revised levels and color signals would need independent evaluation before being relied on.

Key ideas

• RAVI uses moving averages with different lookback lengths to assess whether price action is trending.
• The original description compares 7-bar and 65-bar averages and treats readings above 3% as trending.
• The extended version adjusts threshold levels to accommodate different instruments and time frames.
• Color changes are suggested as possible cues for trend starts and re-entries, without reported validation results.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.