Category: Money Tips Date: 2006-09-10
Rate of change indicators (Rate Of Change) used to measure changes in the market rate:
The day's closing price - on the 12th closing price rate of change indicator = â”?â”?â”?â”?â”?â”?â”?â”?â”?â”?â”?â”?â”?â”?â”?/span>
Closing price on the 12th Principle: According to the relationship between price and quantity of supply and demand, price increases as time goes on the inevitable shrinking of its gains, this time when the speed and strength gradually slowing, and business is likely to reverse. Similarly, down no exception.
Benefits: stock before the arrival of the peak or low, change rate index will be the first warning.
Disadvantages: should consider the general trend, rising only in the low to buy time. Reversal in the high-end moving for money not to sell when the new Air One.
Judged Skills:
1. When the ROC from the top-down below 0:00 for the time to sell, and the other pierced the ROC from the bottom-up 0:00 as the buy signal.
2. When stock prices reach new heights, while the ROC does not meet the increase in mean higher power weakened, this departure from the phenomenon, should be wary of price reversal down.
3. When the stock price innovation and low, while the ROC is not with the decline in power means less down, this departure from the phenomenon, to be bargain hunting.
4. If the stock price and the ROC has been rising at a low level, indicating short-term stock prices tend to be normal or short-term rebound.
5. If the stock price down with the ROC synchronization at a high level, indicating there will be short-term or short-term stock prices tend to fall to normal behavior.
6. ROC fluctuations in the "normal range", within, they rise to the first overbought line, should sell the stock.
7. ROC fluctuations in the "normal range", within the drop to the first oversold line, should be buying stocks.
8. ROC break up after the first overbought line, indicators continue to move the second line of ultra-fares of the possibility of buying a great indicator overbought touch the second line, most will end rally.
9. ROC break down after the first oversold line, indexes continued to decline in second-line likely very oversold, oversold indicators to touch the second line, declines most will stop.
10. ROC upward through the third overbought line, are crazy sex bull market, should be not easily sell the stake.
11. ROC down through the third oversold line, belonging to the collapse of short exchanges, should refrain from buying stocks easily.
12. When the ROC indicator through the third overbought oversold line, the management of stock to the SAR, the results quite satisfactory.
