Ravi Indicator is a forex trading indicator. Ravi indicator is a very simple forex trading indicator. This indicator should be used as a signal confirmation indicator rather than signal generator indicator. Ravi indicator works only in a trending market conditions and one might get lots of fake signals in a sideways market. So, simple way to avoid fake signals is by avoiding trading in the sideways market. You can use this indicator can be combined with price action analysis and moving average based indicators.
When it comes to trading and investing, discipline is the most important factor. Regardless of the any trading indicator, one cannot gain consistency if one is not disciplined. When you install Ravi indicator in your trading platform, your charts should look like this:
- Ravi indicator
Ravi indicator consists of histogram bars that are green, grey, and red. These different colors have different meanings. Green color indicates bullish market. Grey color bars indicate reversal warnings and the red bars indicate bearish market. It is important that you should watch for the general direction of the market and trade accordingly. Every green bar formation on the indicator doesn’t necessarily mean buying signal. Formations of green bars in a down trending market should be neglected. Similarly, formations of red bars in an up trending market doesn’t mean sell. In short, overall trend of the market cannot be ignored.
Buying Conditions Using Ravi Indicator.
- Market should be up trending.
- The Ravi indicator should form green bars.
- The Ravi indicators should be in positive territory.
- Place your long position as soon as above conditions are met.
- Place your stop loss just below the recent swing low.
- Take your profit when the Ravi indicator dives into the negative territory.
Selling Conditions Using Ravi Indicator.
- Market should be down trending.
- The Ravi indicator should form red bars.
- The Ravi indicators should be in negative territory.
- Place your short position as soon as above conditions are met.
- Place your stop loss just above the recent swing high.
- Take your profit when the Ravi indicator rises into the positive territory.
Download Free Forex Ravi Indicator
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