Introduction and calculation
Oscillator ROC (degree of change in percent) is very simple and yet effective dynamic oscillator, which measures the percentage change in price from one period to the next. When calculating the oscillator current price is compared to the price of a specified number of periods ago. For example, a 10-periodny ROC will be calculated as follows:
The values of oscillator line shape, which fluctuates above and below the zero line, as the degree of change varies from positive to negative. Oscillator ROC can be used like any other dynamic oscillator, while the higher minimums, lower highs, positive and negative divergence, and crossing above and below zero for signals.
graph "Lucent" shows that a large negative divergence formed in December 1999. and oscillator ROC moved to negative territory just before the big decline in prices. Although this was an excellent signal to sell, oscillator can lead to rapid turn when it moves above and below zero. As with most technical indicators, ROC oscillator should be used in combination with other aspects of technical analysis, as well as with other indicators nedinamicheskimi.
The use of graphics programs
In most graphics programs, ROC oscillator can be built using a variety of periods, for example, 10 days or 30 days, by changing the values of the first option. The longer period of time used, the greater the fluctuation in the indicator (for both the value and duration). The second option allows the user to add a line to the ROC indicator moving average for more warning signals.
Oscillator ROC (degree of change in percent) is very simple and yet effective dynamic oscillator, which measures the percentage change in price from one period to the next. When calculating the oscillator current price is compared to the price of a specified number of periods ago. For example, a 10-periodny ROC will be calculated as follows:
ROC = 100 * (today's closing price) / (closing price 10 periods ago)
The values of oscillator line shape, which fluctuates above and below the zero line, as the degree of change varies from positive to negative. Oscillator ROC can be used like any other dynamic oscillator, while the higher minimums, lower highs, positive and negative divergence, and crossing above and below zero for signals.
graph "Lucent" shows that a large negative divergence formed in December 1999. and oscillator ROC moved to negative territory just before the big decline in prices. Although this was an excellent signal to sell, oscillator can lead to rapid turn when it moves above and below zero. As with most technical indicators, ROC oscillator should be used in combination with other aspects of technical analysis, as well as with other indicators nedinamicheskimi.The use of graphics programs
In most graphics programs, ROC oscillator can be built using a variety of periods, for example, 10 days or 30 days, by changing the values of the first option. The longer period of time used, the greater the fluctuation in the indicator (for both the value and duration). The second option allows the user to add a line to the ROC indicator moving average for more warning signals.Forex Magazine
based on www.stockcharts.com
based on www.stockcharts.com
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