Trade Forex Trading

Learn Forex Trading

Rate of Change Forex Technical Analysis and Rate of Change Forex Trading Signals

Rate of Change, ROC indicator is used to calculate how much price has changed within a specified number of price periods. It calculates the difference between the current candlestick and the price of a selected number of previous candlesticks.

 

The difference can be calculated using Points or Percentages. Rate of Change moves in an oscillation manner, where it oscillates above and below a zero center-line level. Levels above zero are bullish while those below zero center-line level are bearish.

 

The greater the changes are in the prices the greater the changes in the ROC.

Rate of Change Technical Indicator Forex Indicator


 

Forex Technical Analysis and Generating Forex Trading Signals

Rate of Change indicator can be used to generate Forex trading signals using a number of methods, the most common ones are:

 

Crossover Signals

Bullish Signal- buy signal is generated when the ROC crosses above the zero center line

Bearish Signal- sell signal is generated when the Rate of Change crosses below the zero center line.

Bullish Trend Bearish Trend Indicator

 


Regulated Forex Broker

Takes 4 to 6 weeks to open an account, open early: Read The Article "Account Opening Procedure"

Choose the Best Forex Broker: Read The Article "Best Forex Broker"

Up To $6.67 Dollars Bonus for Every Lot Traded Get Up To $6.67 For Every Lot Traded

 

Overbought/Oversold Levels:

Overbought - The higher the reading the more overbought a currency pair is. Values that are above the overbought level imply that a currency is overbought and there is a pending price correction

 

Oversold - The lower the reading the more oversold a currency pair is. Values below the oversold level imply that a currency is overbought and there is a pending price rally.

 

However, during strong trending markets the price will remain in the Overbought/Oversold Levels for a long time, and rather than the price reversing the price trend will continue for quite some time. It is therefore best to use the crossover signals as the official buy and sell signals.

 

Trend Line Breaks

Trend lines can be drawn on ROC indicator just the same way trend lines can be drawn on price charts. Because The Rate of Change is a leading indicator, the trend lines on the indicator will be broken before those on the price charts. A trend line break on the Rate of Change is an indication of a bullish or bearish reversal signal.

 

  • Bearish reversal- Rate of Change readings breaking above a downward Forex trend line warns of a likely bullish reversal.
  • Bearish reversal- Rate of Change readings breaking below an upward trend line warns of a likely bearish reversal.

 

Divergence Trading

Rate of Change can be used to trade divergences, and to identify potential trend reversal signals. There are four types of divergences; classic bullish, classic bearish, hidden bullish and hidden bearish dvergence.

Up To $6.67 Dollars Bonus for Every Lot Traded Get Up To $6.67 For Every Lot Traded

Market Outlook: Very Bullish for EURUSD, and EURJPY - Also for GBPUSD, GBPJPY, and AUDUSD (No Need For Technical Analysis - This is Risk Appetite -Risk Averse Speculation).

Do Not Be Left by This Opportunity: Open an account and start buying Euros and position yourself early - Risk appetite speculation has already started. - Others are already profiting - Read the article How to Fast Track Account Opening and Open an account now.

Strategy: Buy the retracements and use 1 Hour and M15 Charts to look for best entry and exit points - Also checkout Money Management Rules.

Poland FX Seminar Gala

XM Account Holders Attend Poland FX Seminar

Malaysia Seminar

XM Account Holders Phillipines Seminar

XM Account Holders Thailand Seminar

Malaysia Forex Seminar

Hungary Forex Seminar

Greece Forex Seminar

XM Account Holders Hungary Seminar

XM Account Holders Thailand Seminar

European Forex Broker XM is Licensed and Regulated in 12 Countries; 10 European Countries, Australia and UK

XM Forex Broker Regulation Licenses

Should you open an XM Account this is exactly how it looks like:

Forex Account Secure Clients' Area - Trader Cabinet

Up To $6.67 Dollars Bonus for Every Lot Traded

Loyalty Bonus Points - Up To $6.67 Dollars Bonus For Every Lot Traded

Bonus Points

Forex Trading Accounts Members Area - Withdraw and Deposit Options

Real Forex Trading Account Withdraw and Deposit Options

XMP Forex Loyalty Bonus Program

Silver and Gold Online Trading

CFDs Trading and Forex Trading

50% and 20% Bonus

$5,000 Forex Bonus

Bonus Points

Regulated Broker