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ROC Indicator Trading Strategy Guide

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23 views1 page

ROC Indicator Trading Strategy Guide

Uploaded by

tyai1
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Trading strategies using ROC Indicator

Now, I shall move on and explain how to trade with ROC indicator. Let us look at an
example of a simple strategy employing the price rate of change indicator, which
does not require complex indicators. Input data: daily timeframe, AUD/USD, and
ROC (9). The daily timeframe is taken to catch even small price movements,
spending no more than 20-30 minutes a day to control the indicator chart and the
price.

1. Build a trend line of a downward movement along two clear highs. The downward
movement ends sooner or later, so the goal is to search for a signal that indicates its
reversal. The trend line is the main tool, the ROC oscillator is the confirming
supplementary tool.

2. Define the levels of overbought and oversold zones. They are useful for assessing
the market condition and defining profit targets.

3. Expect the trend reversal signal.

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