How to Set Rate of Change on MetaTrader 4 Charts - Adding MT4 ROC Indicator

Step 1: Open Navigator Panel on Software Platform

Open the Navigator window like as shown & displayed below: Go to 'View' menu (press on it), then select 'Navigator' window (press), or From Standard ToolBar click 'Navigator' button or press key board short-cut keys 'Ctrl+N'

On Navigator window, choose & select 'Indicators', (Double Click)

How Do You Add Rate of Change, ROC in MT4 Platform Software? - Rate of Change ROC Settings in MT4

How Do I Add Rate of Change, ROC in the MT4 Software - MT4 Rate of Change, ROC Indicator

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

Expand the menu by clicking the expand tool stamp " + " or double-click the 'indicators' menu, after that the button will appear and be shown as (-) & will now display a list just as shown below - select the Rate of Change, ROC forex chart indicator from this list of trading indicators so as to add the Rate of Change, ROC to the chart.

How Do I Add Rate of Change, ROC on the Chart? - Rate of Change ROC Setting on MT4

How Do I Add Rate of Change, ROC - From the Above window you as a trader can then place Rate of Change, ROC that you as a trader want on the chart

How to Set Custom Rate of Change, ROC to MT4

If the indicator you want to add is a custom technical indicator - for example if the Rate of Change, ROC you as a trader want to add is a custom indicator you will need to first add this custom Rate of Change, ROC on the MT4 software & then compile custom Rate of Change, ROC so that as the newly added Rate of Change, ROC custom indicator pops up on the list of custom indicators in MetaTrader 4 Software Platform.

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

About Rate of Change, ROC Example Explained

Rate of Change Analysis & Rate of Change Signals

Rate of Change, ROC indicator is used to calculate how much price has changed within a specified number of trading price periods. It calculates the difference between the current candle & the price of a specified number of previous candles.

The difference can be calculated and measured using Points or Percents. 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.

Rate of Change - Rate of Change ROC Settings in MT4

FX Analysis and Generating Signals

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

Forex Crossover Signals

Bullish Signal - buy trade signal gets generated/derived when the ROC crosses above zero centerline

Bearish Signal - sell signal gets derived/generated when Rate of Change crosses below zero centerline.

Bullish Trend Bearish Trend Indicator - Rate of Change ROC Setting in MT4

Over-bought/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 over-bought and there's a pending price correction

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

However, during strong trending markets the price will remain in the Overbought/Over-sold Levels for a long time, & rather than the price reversing the market trend will continue for quite a while. It is hence best to use the crossover signals as the official buy and sell signals.

FX 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 trendlines on the trading indicator will be broken before those on the price charts. A trendline break on the ROC is an indication of a bearish or bullish reversal setup.

Bearish reversal- Rate of Change values/readings breaking above a downward trend line warns of a likely bullish reversal.
Bearish reversal- ROC readings breaking below an upwards trendline warns of a likely bearish reversal.

Divergence Trading

Rate of Change can be used to trade divergences, and to identify the potential trend reversal signals. There are 4 types of divergences: classic bullish, classic bearish, hidden bullish & hidden bearish divergence.

Get More Topics and Tutorials:

Trade Forex Trading