Application skills of roc index in futures
When 1 and roc cross the 0-axis from bottom to top, it shows that many forces have increased and entered a strong area, which is a buying signal. On the other hand, when roc crosses the 0 axis from top to bottom, it shows that the rising kinetic energy is transformed into the falling kinetic energy, and the market enters the weak zone, which is a selling signal.
2.roc is above the 0-axis or rising continuously, indicating that the market is in a strong position, and the share price with multiple advantages will continue to rise, which is a shareholding signal. If the roc is below the 0 axis or continues to fall, the market will be in a weak position, and the leading share price of the empty side will continue to fall, which is a signal to hold money.
3.roc turned down when it was far away from the top of the 0-axis, indicating that the power of stock price rise began to dry up, and short-term peaking was a short-term selling signal. Roc runs away from the bottom of the 0-axis, indicating that the kinetic energy of stock price decline is weakened, and the short message bottoms out, which is a short-term buying signal.
4. When the stock price hits a new high and roc fails to cooperate with the rise, it means that the kinetic energy of the rise is insufficient, so beware of the stock price reversing downward. However, when the stock price hit a new low, roc failed to cooperate with the decline, indicating that the downward momentum is insufficient, so we can consider absorbing on dips.
5. If the stock price rises synchronously with roc at a low level, or there are signs of rebound in the short term; If the stock price and roc fall synchronously at a high level, or there are signs of decline in the short term.
In practice, roc index can not only help us to effectively identify the running state of the trend, but also help us to carry out short-term high-selling and low-sucking operations. Using ROC indicators for trading operations can greatly increase the odds of investors.
Roc buy signal
It is understood that the high success rate of the dark horse is that before the start of the market, the bottom volume changed hands to attract sufficient funds, and the first wave of ROC attacked the stocks of the third overbought line. On the attack day, the turnover rate was 3.5% and -6%, and the first wave of monthly increase was above 25%. After the stock price correction, the overall attack angle can still be maintained above 45 degrees. Once the ROC index of the first peak reaches the third overbought line, its future trend tends to be outstanding, and investors should intervene in the mid-line callback.
For leading stocks that have reached the third overbought line, investors can intervene decisively once they encounter the rapid dishwashing of the main force. Among them, ROC broke through the zero line upward and entered a strong area, indicating that many parties have strong strength and are auxiliary short-term buying signals. As for the buy signal, is it time to buy? ROC has the principle of overbought and oversold. The extent of overbought and oversold is slightly different according to the price ratio of individual stocks, but it is generally between plus and minus 6.5. When ROC reaches the oversold level, it will buy. When the overbought level is reached, selling and ROC will also have a deviation effect on the stock price.
Composition principle of roc index
It can be understood that ROC index is also called change rate index. When investors analyze stocks in the stock market, they are generally divided into fundamental analysis and technical analysis, and ROC is the technical analysis index. ROC index is one of the counter-trend indicators, which compares the closing price of the day with the closing price n days ago, and measures the price momentum by calculating the proportion of the closing price change in a certain period of time, so as to detect the strength of supply and demand in stock price trading in advance, and then analyze the trend of stock price and its willingness to turn.
What is the principle of exponential composition? ROC index uses the acceleration principle in physics to measure the motive force of stock price movement and the strength of buying and selling power of long and short sides by applying price changes, so as to analyze the trend of stock price before the market and whether there is a willingness to turn around.
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