# Chande Chart Checkup

#### wtw

##### Newbie
1 0
Hi All,

Does anybody know how Chande Chart Checkup expert system was implemented in Metastock?

I'm interested in knowing how to determine whether the market is trending or ranging. It will be great if formula is available.

Thanks

#### TheBramble

##### Legendary member
8,394 1,170
wtw - No, but if you do get hold on the formula for the various targets and trending indicators, I'd be pleased if you posted it here.

Was doing some very useful stuff with it about 12 months ago, but am stymied through lack of the specific formulations.

#### Pall Mall

##### Newbie
5 0
Hi there,

That methodology's name is RAVI (Range Action Verification Index), you can find it in Mr. Chande's book:

Beyond Technical Analysis: How to Develop and Implement a Winning Trading System.

Here's the original formula:

RAVI = Absolute value (100 x (7-SMA-65-SMA)/65-SMA)

And here's the formula implemented to MetaStock:

RAVI: Abs(100*(Mov(C,7,S)-Mov(C,65,S))/Mov(C,65,S));

And here's the picture:

Interpretation: If the RAVI fall down under three (3.0) you may call it ranging, but if RAVI raise over three (3.0) it can be called trending.

But I prefer to modified that MetaStock formula with mine, so the interpretation will be more simple like this:

If the RAVI fall down under zero (0) it is ranging, but if RAVI raise over zero (0) it can be called trending.

Here's the formula on MetaStock:

RAVI: Abs(100*(Mov(C,7,S)-Mov(C,65,S))/Mov(C,65,S))-3;

And here's the lovely picture:

Goodluck,
Pall Mall

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