Forex Rate of Change Tradingview Indicator

Our custom developed Forex Rate of Change Tradingview Indicator. The Price Rate of Change (ROC) is a momentum-based technical indicator that measures the percentage change in price between the current price and the price a certain number of periods ago. The ROC indicator is plotted against zero, with the indicator moving upwards into positive territory if price changes are to the upside, and moving into negative territory if price changes are to the downside.

The indicator can be used to spot divergences, overbought and oversold conditions, and center line crossovers.

KEY TAKEAWAYS

  • The Price Rate of Change (ROC) oscillator is unbounded above zero. This is because its value is based on price changes, which can indefinitely expand over time.
  • A rising ROC typically confirms an uptrend. But this can be misleading, as the indicator is only comparing the current price to the price N days ago.
  • A falling ROC indicates the current price is below the price N days ago. This usually helps confirm a downtrend, but isn’t always accurate.
  • An ROC reading above zero is typically associated with a bullish bias.
  • An ROC reading below zero is typically associated with a bearish bias.
  • When the price is consolidating, the ROC will hover near zero. In this case, it is important traders watch the overall price trend since the ROC will provide little insight except for confirming the consolidation.
  • Overbought and oversold levels are not fixed on the ROC, rather each asset will generate its own extreme levels. Traders can see what these levels are by looking to past readings and noting the extreme levels the ROC and reached before the price reversed.

Feel free to use this indicator together with our other technical indicators (oscillators, momentum) or price action methods to maximize your trading accuracy.

Free Download

Forex Rate of Change Tradingview Indicator

The EUR/GBP 15 minute chart below displays the Forex Rate of Change Tradingview Indicator in action.

Forex Rate of Change Tradingview Indicator

Installation

Copy and paste the Forex Rate of Change Tradingview Indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.

You can access this folder from the top menu as follows:

File > Open Data Folder > MQL4 > Indicators (paste here)

How to remove Indicator from your Metatrader Chart?

  • Select the Chart where is the Indicator running in your Metatrader 4 Client
  • Right click into the Chart
  • “Indicators list”
  • Select the Indicator and delete

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Author: Dominic Walsh

I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Linkedin | Youtube| Twitter | Pinterest | Medium | Quora | Reddit

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