This is very Important keyword for analysing price chnage is in positive direction or Negative direction.
It measures the percentage change in price between the current price and the price a certain number of periods ago.
ROC indicator is plotted against zero
How To calculate
Bound and limit
Tips: Market trend types
- Daily
- Monthly
- Yearly
ROC Time Priods can be set to below:
10 - 15days
21- monthly
63 - 3 months
125 - 6 months
250 - 1 year
Pros of ROC chart:
* We can identify Over sold and over bought stock
* We can identify Over sold and over bought stock
Cons:
Not recommended for Intraday trading
How to Use ROC Graph:
In Zerodha kite Open Studies and Type Price rate of change and give duartion 15 Days, it can be anything according to your analysis requirement.
You will be able to seel Graph like below:
Analysis:
If Graph is going Down only then also using MACD (Divergence call you can decide buy and short . We will discuss this in coming posts)
Find out over sold and over bought using ROC and analyse:
