ROC change rate
ROC (Rate of Change) is next to MACD the most used indicator
of technical analysis.
To analyze this indicator, it is necessary to determine the
overbought and oversold levels. These levels should be set so that in the area
between them there was approx. 90% of the indicator's progress. The upper limit
of this area is determined by the overbought level (mine is set at 60), while the lower limit is
the sell-out level (mine is set at -20).
The buy signal is generated with the indicator rising
above the sell-out level -20.
The sales signal is generated when the indicator drops
below the overbought level 60.
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