Rate of change trading strategy aik momentum based strategy hoti hay, is strategy main two concept ki practice ki jati hay jin main say pehla yeh kay trend ki strength ko study kiya jata hay aur possible momentum shift ko measure karnay ki koshish ki jati hay, is main yeh baat kafi important hay kay market ki rapid changes say react kia jay, yeh bhi advise kia jata hay kay market par nazar rakhi jaye kay woh kis side par move kar rahi hay jo sirf rate of change say hi pata chalta hay,
Main functions of rate of change:
Rate of change percentage current price ko price N period main measure karta hay, ya phir rate of change yeh compare karta hay kay current price kitni taizi say move kar rahi hai nisbatan previous day kay, ya previous week kay, yeh indicator latest close prices ko past ki certain period ki close price kay sath compare karta ha, is kay liay 7-days rate of change recent close price ko 7 days ago wali close price kay sath use karay ga, ham ROC indicator velocity indicator bhi kehtay hain, ROC indicator do cheezon ko measure karta hay aik yeh kay momentum kab shift karay ga aur second trend ki strength ya weakness ka idea bhi daita hay,
Steps to calculate rate of change and its formula:
Rate of change ko mainly two steps main calculate kartay hain, pehlay step main momentum calculate kartay hain jo previous close price ko latest close price main say minus kar kay hasil hota hay, is result ko previous close price say divide kia jata ha aur phir 100 say multiply kar kay percentage hasil kar li jati ha iska formula ye banta ha,
Rate of change = (latest close - previous close) / (previous close) x100
previous close woh earlier price hoti hay jo trader nay specify ki hoti hay, resulted percentage ko oscillator par plot kia jata ha jo +100% aur -100% kay darmian oscillate karta hay, yeh indicator current price aur previous periods ki price kay sath calculate kar kay in main change ka batata hay, Yeh indicator zero kay sath plotted hota hay. Ager price main positive change aye to upside move karta hay, jab kay ager is main negative change aye to yeh downside move karta hay,
Usage of rate of change indicator:
ROC main momentum oscillator ki tarah key consideration center line hoti hay, jab ROC center line say fall below hoti hay aur turn back karti ha aur particular pair ki prices uptrend ma hoti hain to buy signal generate hotay hain, isi tarah jab ROC center line say up move kar kay turn karta ha aur pair ki prices downtrend main hoti hain to sell signals generate hotay hain, ranging market main overbought aur oversold conditions reference line par depend karti hain, jo ROC kay around manually draw ki jati ha, aam rule kay mutabik ROC ko 5% say ziada time reference line kay above aur below spend nhi karna chaiay
Main functions of rate of change:
Rate of change percentage current price ko price N period main measure karta hay, ya phir rate of change yeh compare karta hay kay current price kitni taizi say move kar rahi hai nisbatan previous day kay, ya previous week kay, yeh indicator latest close prices ko past ki certain period ki close price kay sath compare karta ha, is kay liay 7-days rate of change recent close price ko 7 days ago wali close price kay sath use karay ga, ham ROC indicator velocity indicator bhi kehtay hain, ROC indicator do cheezon ko measure karta hay aik yeh kay momentum kab shift karay ga aur second trend ki strength ya weakness ka idea bhi daita hay,
Steps to calculate rate of change and its formula:
Rate of change ko mainly two steps main calculate kartay hain, pehlay step main momentum calculate kartay hain jo previous close price ko latest close price main say minus kar kay hasil hota hay, is result ko previous close price say divide kia jata ha aur phir 100 say multiply kar kay percentage hasil kar li jati ha iska formula ye banta ha,
Rate of change = (latest close - previous close) / (previous close) x100
previous close woh earlier price hoti hay jo trader nay specify ki hoti hay, resulted percentage ko oscillator par plot kia jata ha jo +100% aur -100% kay darmian oscillate karta hay, yeh indicator current price aur previous periods ki price kay sath calculate kar kay in main change ka batata hay, Yeh indicator zero kay sath plotted hota hay. Ager price main positive change aye to upside move karta hay, jab kay ager is main negative change aye to yeh downside move karta hay,
Usage of rate of change indicator:
ROC main momentum oscillator ki tarah key consideration center line hoti hay, jab ROC center line say fall below hoti hay aur turn back karti ha aur particular pair ki prices uptrend ma hoti hain to buy signal generate hotay hain, isi tarah jab ROC center line say up move kar kay turn karta ha aur pair ki prices downtrend main hoti hain to sell signals generate hotay hain, ranging market main overbought aur oversold conditions reference line par depend karti hain, jo ROC kay around manually draw ki jati ha, aam rule kay mutabik ROC ko 5% say ziada time reference line kay above aur below spend nhi karna chaiay