ROC (Rate of Change) Refurbished

andre_007 Premium Cập nhật   
▮ Introduction

The Rate of Change indicator ( ROC ) is a momentum oscillator.
It was first introduced in the early 1970s by the American technical analyst Welles Wilder.

It calculates the percentage change in price between periods.
ROC takes the current price and compares it to a price 'n' periods (user defined) ago.
The calculated value is then plotted and fluctuates above and below a Zero Line.

A technical analyst may use ROC for:
- trend identification;
- identifying overbought and oversold conditions.

Even though ROC is an oscillator, it is not bounded to a set range.
The reason for this is that there is no limit to how far a security can advance in price but of course there is a limit to how far it can decline.
If price goes to $0, then it obviously will not decline any further.
Because of this, ROC can sometimes appear to be unbalanced.


▮ Improvements

The following features were added:

1. Eight moving averages for the indicator;
2. Dynamic Zones;
3. Rules for coloring bars/candles.

▮ Motivation

Averages have been added to improve trend identification.
For finer tuning, you can choose the type of averages.
You can hide them if you don't need them.

The Dynamic Zones has been added to make it easier to identify overbought/oversold regions.
Unlike other oscillators like the RSI for example, the ROC does not have a predetermined range of oscillations.
Therefore, a fixed line that defines an overbought/oversold range becomes unfeasible.
It is in this matter that the Dynamic Zone helps.
It dynamically adjusts as the indicator oscillates.

▮ About Dynamic Zones

'Most indicators use a fixed zone for buy and sell signals.
Here's a concept based on zones that are responsive to the past levels of the indicator.'

The concept of Dynamic Zones was described by Leo Zamansky ( Ph .D.) and David Stendahl, in the magazine of Stocks & Commodities V15:7 (306-310).
Basically, a statistical calculation is made to define the extreme levels, delimiting a possible overbought/oversold region.

Given user-defined probabilities, the percentile is calculated using the method of Nearest Rank.
It is calculated by taking the difference between the data point and the number of data points below it, then dividing by the total number of data points in the set.
The result is expressed as a percentage.

This provides a measure of how a particular value compares to other values in a data set, identifying outliers or values that are significantly higher or lower than the rest of the data.

▮ Thanks and Credits

- TradingView: for ROC and Moving Averages
- allanster: for Dynamic Zones

Phát hành các Ghi chú:
- Added "Volume Rate of Change" option, in which volume is used instead of price. Useful for checking sudden volume changes:

- Modified Dynamic Zone default colors, aiming to give more emphasis to the indicator.

- Added 4 alerts:
1. When entering the Dynamic Zone from top to bottom;
2. When entering the Dynamic Zone from bottom to top;
3. Upon exiting the Dynamic Zone at the top;
4. Upon exiting the Dynamic Zone at the bottom.

- Improved readability of the source code.

🔥 Trade on Mux Protocol and get a fee discount 😉 with up to 100X 🚀 leverage:

☕ Donations
Bitcoin: bc1qpgxr8axh263pzddndrs0jxwv65zxd6sa0qas02
Mã nguồn mở

Với tinh thần TradingView, tác giả của tập lệnh này đã xuất bản nó dưới dạng mã nguồn mở, vì vậy các nhà giao dịch có thể hiểu và xác minh nó. Chúc mừng tác giả! Bạn có thể sử dụng mã này miễn phí, nhưng việc sử dụng lại mã này trong một ấn phẩm chịu sự điều chỉnh của Nội quy nội bộ. Bạn có thể yêu thích nó để sử dụng nó trên biểu đồ.

Thông báo miễn trừ trách nhiệm

Thông tin và ấn phẩm không có nghĩa là và không cấu thành, tài chính, đầu tư, kinh doanh, hoặc các loại lời khuyên hoặc khuyến nghị khác được cung cấp hoặc xác nhận bởi TradingView. Đọc thêm trong Điều khoản sử dụng.

Bạn muốn sử dụng tập lệnh này trên biểu đồ?