ROC reflects the speed of stock market changes by comparing the stock price of the day with the stock price of a certain day before a certain number of days. ROC is called change rate index or change rate index in most books. The following small series brings you a detailed explanation of roc indicators overbought and oversold, I hope you like it!

Detailed explanation of roc index overbought and oversold

ROC is one of the counter-trend indicators. It compares the closing price of the day with the closing price n days ago, calculates the ratio of the closing price change in a certain period of time, and measures the momentum of the price by comparing the price movements, so as to detect the strength of supply and demand in stock price trading in advance, and then analyze the trend of the stock price and its willingness to turn around.

Roc indicator overbought and oversold

In the detailed explanation of the overbought and oversold roc indicator, when the ROC fluctuates within the "normal range" and rises to the first overbought line, the stock should be sold; When ROC fluctuates within the "normal range" and falls to the first oversold line, it is time to buy stocks. After ROC breaks through the first overbought line, it is very likely that the index will continue to rise to the second overbought line (belonging to the medium-term bull market). When the indicator touches the second overbought line, the rise may end.

Like MACD, RSI, KDJ and other indicators, ROC is also one of the most common reference indicators for technical analysis. ROC's long and short power comparison. ROC broke through the zero line and entered the strong area, indicating that many forces are buying signals. ROC fell below the zero line and entered the weak area, indicating that the short-selling power of the empty side is strong and it is a selling signal.

The application skills of roc index in futures investors need to learn these points.

When the ROC reference indicator and the indicator moving average have a low gold cross, it is also a buy signal. At this time, the market thinks that there will be a wave of gains in the short term. Generally, when this golden intersection appears in a lower position, it means that the possibility of buying is low.

Application skills of roc index

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 turns down when it is much higher than the 0-axis, indicating that the upward momentum of the stock price begins to dry up, and the short-term peak is 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_ horse indicator ROC buy signal is it time to buy?

Like MACD, RSI, KDJ and other indicators, ROC is also one of the most common reference indicators for technical analysis. ROC contains only one parameter, that is, how many days before the stock price comparison, this number of days n is the parameter. Is it time to buy the roc buy signal?

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.