The Rate of Change indicator is plotted against the zero line, when the Roc line is above the zero line it reflects a sharp price advance when the Roc line is below to zero line it shows a sharp decline in the price. This indicator can also be used to spot divergences as well as overbought and oversold conditions.
No specific requirements, this indicator should work with all versions of the cTrader Desktop platform.
How to Trade Using This Indicator
The Price Rate of Change (ROC) oscillator is a momentum t5echnical indicator defined as a zero-level midpoint and when the Roc Line moves above the zero line it confirms an uptrend while a falling ROC below zero indicates a downtrend, but when the price is consolidating, the ROC line will stay near the zero line.
We understand that the documentation is limited, to find out how to use it try a Google search for Rate of Change, you can also visit Investopedia for help.
ROC Indicator Formula
The formula for this indicator is:
Roc = ((closed price p - closing price p-n) / closing price p-n) * 100
- Closing Price p = most recent closing price for a period
- Closing Price p-n = Closing price n periods before the most recent period.
The indicator allows the option to change the data source and period used in the formula above, the another settings allow you to customise how the indicator is displayed.
Remove Author Box
You can easily remove the author box shown on the chart by setting the show author parameter in the indicator settings to No.
How To Install & Remove
First, make sure you have the cTrader trading platform installed and then simply unzip the file and double-click on it to automatically install it onto the platform.
If you have any questions, please first search our product help forum for the answer, if you cannot find it, post a new question.
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