User Rating: 0 / 5

Star InactiveStar InactiveStar InactiveStar InactiveStar Inactive
 

Rate of Change (ROC)

Utility: Identifying the Trend

Standard Settings: 21, 63, 125, 250 Periods

The rate of change consist the simplest form of a technical analysis oscillator and can be also usually found as momentum.

It can simply measure the percentage change between the current price of an asset and its price before a certain period. For example the (%) change between the current price and the price before 250 days or before 21 days.

 

The Trading Year Breakout

There are 250 trading days in a single year or 125 trading days per half year. There are trading 63 days per quarter and 21 trading days per month. In general, a trend reversal commence when the shortest timeframe spreads gradually to the other timeframes.

 

How ROC defines the Long-Term Trend –Conditions of Bulls and Bears

□ When ROC of 21 periods and ROC of 63 periods is above the 125 periods ROC and the 250 periods ROC then the long-term trend is considered bullish.

□ When ROC of 21 periods and ROC of 63 periods is below the 125 periods ROC and the 250 periods ROC then the long-term trend is considered bearish.

 

Calculating ROC

■ ROC = [(Close – Close n periods ago)/ (Close n periods ago)] * 100

 

READ MORE

■ COMPARE PROVIDERS

Forex Brokers

Trade Signals ► CFDs Brokers        
■ TREND INDICATORS Trend Indicators

» Standard Deviation

» Bollinger Bands

» Parabolic SAR

» Ichimoku

» Moving Averages » Fibonacci Trading
■ TRADING OSCILLATORS Oscillators

» Rate of Change

» RSI

» Williams %R

» Stochastic

» Gator

» Momentum

   

» MACD

» Awesome

» DeMarker

» DMS System

» CCI

» StochRSI
■ NEWS INDICATORS News Indicators

» Interest Rates

» GDP

» US NFP

» Consumer Price Index

» Retail Sales

» Trade Balance
   

» Purchasing Manufacturing Index

» Consumer Confidence Survey    

 

 

 

 

Rate of Change (ROC)

WebForex ©