ROC Smoothed Indicator

ROC Smoothed Indicator

ROC Smoothed Indicator For MT4 provides bullish and bearish forex trend trading signals using rate of change and Moving average filter

The ROC smoothed indicator for MT4 calculates the rate of change of forex currency pair to provide bullish and bearish trend signals. It calculates the rate of change by using the price change between the current closing price and the closing price of a desired period. The rate of change or the switch between the bullish to bearish and vice versa helps forex traders with a best entry point.

The indicator is an oscillator and works well for new and advanced forex traders. Moreover, traders can use this indicator in all intraday price charts and higher time frames. Additionally, forex traders can use this indicator in automated trading systems.

ROC Smoothed Indicator For MT4 Trading Signals

The indicator plots the oscillator as a single red line in a separate window. For clarity, traders can add a line at the zero level. In effect, if the oscillator moves above the zero line it indicates a bullish price trend and a movement below zero is a bearish trend. The trading strategy is based on the crossover of the zero line and the oscillator line.

Once the indicator line crosses above the zero line, traders should consider entering a buy trade. Traders can place a stop loss below the previous swing low to secure the position. Since the indicator does not provide a profit target, traders should book profits at an opposite trading signal or with a good risk reward ratio.

Additionally, traders can enter the market with a sell position if the indicator line moves below the zero.

Conclusion
In summary, the ROC – rate or change indicator for MT4 is effective in identifying the change of market trend. It is an essential tool for forex trend traders.