April 3, 2022

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Rate Of Change – ROC

The rate-of-change indicator (ROC), also referred to simply as momentum, is a pure momentum oscillator that measures the percentage change in price from one period to the following one. When calculating ROC, the current price is compared to the price “n” periods ago. The chart forms an oscillator that fluctuates above and below the zero line as the rate of change moves from positive to negative. As a momentum oscillator, ROC shows signals such as crossing the centerline, divergences, and overbought/oversold levels. Since divergences are not reversal signals in most cases, they will not be discussed in detail in this article. Although crossing the center line causes price fluctuations, especially in the short term, these crossovers can be used to identify the overall trend. The identification of overbought or oversold extremes is natural for the Rate-of-Change Oscillator.

 

The indicator has one line:

  1. ROC

We have added these basic conditions:

  • ROC is rising/falling
  • ROC is above/below level
  • ROC crosses above/below level

Indicator is implemented for: MT4/MT5/Tradestation/ Multicharts

 

You can easily do your conditions in Custom blocks. More informations you can find here:

 

 

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Emmanuel
Emmanuel
April 9, 2022 9:44 am

Excellent ! Thank you