The rocv2.1 indicator for MetaTrader4 is also tagged the Rate-of-Change (ROC) indicator and derives its use in its ability to display the percentage of price change for a specified forex pair and displays the corresponding bars in the indicator window.
A new chart window for a particular symbol is opened (in view of the predefined “Period for new opened charts,” which is set at 15 Min on default) when you click on a bar or name representing the symbol.
The rocv2.1 indicator is classified as a velocity or momentum indicator due to its ability to gauge the strength of price momentum via its rate of change. The rocv2.1 indicator like most momentum oscillators comes up on a separate window below the activity chart. The rocv2.1 indicator is plotted against a zero level, which separates the positive and negative values.
Traders believe that positive values of the rocv2.1 indicator indicates buying pressure or momentum, while negative values of the rocv2.1 indicator signifies downward selling pressure or momentum. When the values of the rocv2.1 indicator increases in either direction, negative or positive, depicts surging momentum, and declining values is indicative of diminishing momentum.
The rocv2.1 indicator can be used in a whole lot of ways. Asides being an all-purpose trend strength or trend indicator, the rocv2.1 indicator can also be deployed as a divergence indicator that gauges a likely imminent trend change. Divergence can be viewed when the price of a symbol moves in a particular direction while the rocv2.1 indicator takes the opposite direction.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (Pairs, Period for calculating, Period for new opened charts, Color when moved up, Color when moved down), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: momentum oscillator