How to Add Rate of Change Indicator in MT4 Charts - Adding MT4 ROC Indicator

Step 1: Open Navigator Window on CFD Trading Software

Open Navigator panel as shown and illustrated below: Navigate to "View" menu (click on it), then select "Navigator" window (click), or From Standard Toolbar click the "Navigator" button or press key-board short-cut keys "Ctrl+N"

On Navigator window, select 'Technical Indicators', (Double-Click)

How to Add Rate of Change, ROC Indicator in MT4 - MT4 Rate of Change, ROC Technical Indicator

Step 2: Expand the Indicators Menu on the Navigator - Adding Rate of Change, ROC MT4 Indicator

Expand the menu by clicking the expand button marker (+) or double click the "indicators" menu, after this the button will appear as (-) and will now display a list as shown below - select the Rate of Change, ROC cfds chart indicator from this list of cfds indicators so as to add the Rate of Change, ROC indicator on the cfd trading chart.

How to Add Rate of Change, ROC Indicator - From the Above window you can then place Rate of Change, ROC indicator that you want on the CFDs chart

How to Add Custom Rate of Change, ROC Indicator to MT4

If the technical indicator you want to add is a custom indicator - for example if the Rate of Change, ROC technical indicator you want to add is a custom indicator you will need to first add this custom Rate of Change, ROC indicator on the MT4 software & then compile the custom Rate of Change, ROC indicator so that the newly added Rate of Change, ROC custom indicator appears on the list of custom indicators on the MT4 platform.

To learn how to install Rate of Change, ROC indicators on MT4, how to add Rate of Change, ROC indicator window to MT4 and how to add Rate of Change, ROC custom indicator on MetaTrader 4 - How to add a custom Rate of Change, ROC indicator in MT4.

About Rate of Change, ROC Technical Indicator Explained

Rate of Change Technical Analysis and Rate of Change 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 chosen 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 & 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.

CFDs Technical Analysis and How to Generate Trading Signals

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

CFDs Trading Crossover Trading Signals

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

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

Overbought/Oversold Levels:

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

Oversold - The lower the reading the more oversold a cfds pair is. Values below the oversold level imply that a cfds is oversold 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 & sell signals.

CFDs Trading 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 trendline 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 CFDs trend-line warns of a likely bullish reversal.
• Bearish reversal- Rate of Change readings breaking below an upwards trend-line warns of a likely bearish reversal.

CFD Trading Divergence CFDs 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 divergence.