ROC Index Practice and Advanced Usage Demonstration Diagram

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What does roc mean ROC (Price Rate of Change), also known as the rate of change indicator, is expressed as a ratio based on the difference between today's closing price and its closing price N days ago divided by the closing price N days ago (in essence, it is the increase of the K line N days ago). This indicator was introduced by Gerald Apple and Fred Hitschler in the book "Stock Market Trading Systems", The 12 day and 25 day cycle can achieve equivalent results. Experience in using roc indicators 1. ROC breaks above 0, buying signal When ROC index rises above 0, it means that the closing price of the day has exceeded the closing price of 12 trading days, indicating that the stock price trend is stronger, which is a sign of buying. 2. ROC and index moving average low fork, buying signal When ROC drops to - 10 or lower, ROC index crosses the average line of the index from bottom to top. When golden forks appear, buying points appear, which is an opportunity to buy. Usually, there will be a wave of short-term increases. If the golden fork appears at the - 20 position, the purchase point is more reliable. 3. ROC drops below 0, sell signal The ROC indicator drops below 0, indicating that the closing price of the day has fallen below the closing price 12 trading days ago, indicating that the stock price trend has weakened, and investors should sell stocks in due time. When the stock price fluctuates in a narrow range around 0, the selling point is invalid. 4. ROC and index moving average high dead cross, sell signal The ROC index rises to 20 or even higher, indicating that the stock price has risen sharply in the short term and may fall back at any time, while the dead fork of the ROC index sends a specific sell signal, so investors should be cautious! Advanced usage of roc indicators The dead end high selling opportunity of ROC index appears at a relatively high level. When ROC falls below the average, the high selling opportunity is formed. At this time, the stock price decline has not expanded, but the selling point of roc indicator is very mature. We can sell stocks before the price drops sharply, so as to obtain a better return on investment. (Top Financial and Stock College: www.58188. com) Although the stock price has not fallen significantly, we should consider short trading when ROC index shows a high reversal pattern. The roc indicator gets drunk with the short trend, and the reversal of the high price indicates that we have the opportunity to short. In fact, it is very easy to judge the high reversal pattern of roc indicators. Roc indicator We can use the reverse signal sent by the ROC indicator to confirm the selling point of the stock price into the top area.