There is a quite useful indicator developed by Т. Chande which is called RAVI (Range Action Verification Index).
The principle of its generation is different from the one used to build the ADX indicator. Chande suggested 13 week SMA as a basis of the RAVI indicator that represents quarter states (quarter – 3 months or 65 working days) of the market participants mood concerning prices. The short average that includes the RAVI indicator comprises 10% from the long one and is equal to seven in rough figures.
Author: Nikolay Kositsin