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ROC down signals

The oscillator gives three main down signals.

– Continuation of the downtrend. A downtrend has formed on the chart, and the rate of change line has crossed the zero level from top to bottom and is going down.

– Trend reversal. You can open a trade after the ROC line leaves the overbought zone. This is a situation when the indicator goes down above the overbought level, crosses it from top to bottom and continues to go down.

– Bearish divergence.