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

Step 1: Open the Navigator Panel on Trading Platform Software

Open Navigator window as shown & displayed below: Go to 'View' menu (press on it), then choose 'Navigator' window (press), or From Standard Tool-Bar click 'Navigator' button or press key-board shortcut keys 'Ctrl+N'

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

How Do You Add Rate of Change, ROC Indicator in MT4? - Rate of Change ROC Indicator Settings in MetaTrader 4

How Do I Add Rate of Change, ROC Indicator on MT4 - MT4 Rate of Change, ROC Indicator

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

Expand menu by clicking 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 forex chart indicator from this list of trading indicators so as to add the Rate of Change, ROC indicator to the chart.

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

How Do I Add Rate of Change, ROC Indicator - From the Above window you can then place Rate of Change, ROC indicator that you as a trader want on the 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 as a trader want to add is a custom indicator you will need to first add this custom Rate of Change, ROC indicator on the MT4 platform & then compile custom Rate of Change, ROC indicator so that the newly added Rate of Change, ROC custom indicator pops up on the list of custom indicators in MT4.

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 in MT4 - How to add a custom Rate of Change, ROC indicator in MT4.

About Rate of Change, ROC Technical Indicator Explained

Rate of Change Analysis and Rate of Change Signals

Rate of Change, ROC trading 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 & the price of a specified number of previous candles.

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

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

Rate of Change Indicator - Rate of Change ROC Technical Indicator Settings in MT4

Forex Analysis & Generating Signals

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

FX Crossover Signals

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

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

Bullish Trend Bearish Trend Indicator - Rate of Change ROC Indicator Setting in MetaTrader 4

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 overbought & there's 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 oversold & 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 market price reversing the market trend will continue for quite a while. It is hence best to use the cross-over signals as the official buy and sell signals.

FX Trend Line Breaks

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

Bearish reversal- Rate of Change 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, & to identify potential trend reversal signals. There are 4 types of divergences: classic bullish, classic bearish, hidden bullish & hidden bearish divergence.

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