Do we really need Price Roc(Rate of change)

sh50

Active Member
#1
Roc does not oscillate between limits, it is erratic, it can cause distortions are facts that are limitations onvercome by RSI. Then what is the need for ROC. One on of the sites, it was stated that in addition to identifying an oversold condition, a positive divergence, a moving average crossover one should also have a bullish central line crossover.

On the same site, it is given that when RSI crosses 50, it is taken by many traders as a bullish sign which is true. Then does one really need ROC or MACD for that matter.? Should we not make it and keep it simple as they say?
 
C

CreditViolet

Guest
#2
Pure unsmoothed ROC is perfectly useless I agree.But MACD is still a good lagging confirmation indicator.
 

sudoku1

Well-Known Member
#3
ROC is ONE of the indicator which may b needed but is of litl use if relied 100 %
 

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