As of Monday’s close, the ROC Indicator is short again.
Note that the short-term line (red) is higher than the long-term line (blue).
Some readers have asked about the indicator switching back and forth. I have some ideas on this, which I’ll explore in a future post.
Did this just happen? it looks like its been there for a few sessions
switching back and forth is known as “shaking the tree” it’s deciding which way it wants to stay, while annoying the living shit out of everyone in the meantime
It switched on Friday. On Monday it was confirmed at the close when the ROC5 remained above the ROC252.
Would you please describe how the ROC5 is calculated.
Thanks in advance
Bob, to calculate the ROC5, you simply calculate the percentage gain from the most recent close to the close 4 days prior.
Hello Woodshedder,
Okay thanks. I’m using Worden for my backtesting data and they simply use C-C5 for their ROC5 indicator. I see however that stockcharts uses (C-C5)/C5*100 and that provides the same as yours. Worden numbers are way of though on the C252 from yours so my indicator for the C5 is dead on but the C252 is ugly. Where do you get your data?
I’m fairly new to backtesting and I really enjoy your site! Thanks for all your posts.
Bob