Hey fellow traders! Today, we're diving into a handy tool that can help you keep your finger on the pulse of market momentum—the Rate of Change (ROC) indicator. This MQL4 indicator does the heavy lifting by calculating and plotting ROC in two distinct ways:
1. Percentage-Based ROC
In this version, we express the price change as a percentage of the closing price n periods ago. This approach is fantastic for spotting shifts in momentum across various symbols, giving you that edge in your trading strategies.
2. ATR-Adjusted ROC
This variant takes things a step further by normalizing the ROC through division by the Average True Range (ATR) over the selected period. This normalization helps you compare momentum across different assets while accounting for varying levels of volatility.
With this indicator, you can effortlessly visualize price momentum, whether or not you’re factoring in volatility. It’s a versatile tool that caters to a variety of trading strategies.
Best part? It’s free and open-source!
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