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Chande’s Range Action Verification Index

Written by Miroslav Marinov
Miroslav Marinov, a financial news editor at TradingPedia, is engaged with observing and reporting on the tendencies in the Foreign Exchange Market, as currently his focus is set on the major currencies of eight developed nations worldwide.
, | Updated: September 15, 2025

Chande’s Range Action Verification Index

This lesson will cover the following

  • Explanation and calculation
  • How to interpret this indicator
  • Trading signals generated by the indicator

Developed by Tushar Chande, the Range Action Verification Index (RAVI) is used to help identify whether the market is in a trend. The indicator displays the percentage difference between current and past prices. Chande recommends two key levels for the RAVI – 3% or 1%, depending on the market.

A bullish trend begins when the RAVI crosses the 3% key line from the bottom up. The bullish trend is considered active as long as the indicator line is rising.

A bearish trend begins when the RAVI crosses the 1% key line from the top down. The bearish trend is considered active as long as the indicator line is falling.


If the RAVI line returns to zero, it indicates that the trend has ended and the market is now in a trading range.

If the RAVI line turns back again but does not enter the area between the two key levels, it indicates that the trend has resumed.

Chande's Range Action Verification Index
Chart Source: VT Trader