Rate of change indicator for Webull

ROC Trading Strategy

📌 What is ROC?

A momentum-based indicator measuring price change percentage over a specific period. Helps identify trend strength, reversals, and overbought/oversold conditions.

📌 Trading Strategies Using ROC:

➡ Trend-Following Strategy

Bullish: ROC > 0 → Uptrend signal.
Bearish: ROC < 0 → Downtrend signal.

➡ Breakout Strategy

Buy: ROC breaks above resistance.
Sell: ROC falls below support.

➡ Overbought/Oversold Strategy

Overbought: ROC above +10 or +20 → Caution for reversal.
Oversold: ROC below -10 or -20 → Buying opportunity.

➡ Divergence Strategy

Bullish Divergence: Price ↓, ROC ↑ → Possible uptrend.
Bearish Divergence: Price ↑, ROC ↓ → Potential downtrend.

📌 Best Practices:

✔ Adjust ROC period for different market conditions.
✔ Avoid trading based solely on extreme ROC values.


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