Bimmeresty's ROC

Bimmeresty's ROC indicator is a custom technical analysis tool designed for day traders, particularly those employing scalping strategies on low timeframes such as the 1-minute chart. Built by @highlyrisky, this indicator combines the Rate of Change (ROC) oscillator with a Simple Moving Average (SMA) of the ROC, enhanced with customizable horizontal lines and color-coded fill zones to assist in identifying potential entry, exit, and profit-taking opportunities. The indicator visually represents momentum, trend direction, and key levels for decision-making. ROC is a momentum-based oscillator that measures the percentage change in price over a specified period. It quantifies how fast the price is moving relative to a previous price point, providing insight into the strength and speed of price movements.

The customizable horizontal lines and their fill zones serve as critical reference points for scalpers

• Long Positions: When trading a long (buy) position, the Upper Inner Zone (0.5 to 1.0) is a key area for considering profit-taking. If the ROC enters this zone, it suggests that bullish momentum is becoming overextended, potentially signaling a reversal or slowdown.
  
• Short Positions: For short (sell) positions, the Lower Inner Zone (-0.5 to -1.0) is the target for profit-taking. A ROC in this zone indicates strong bearish momentum that may be nearing exhaustion.
  

This indicator is also useful for exiting positions in unfavorable direction or preventing a premature close of a position (such a consolidation zone).

Follow me @highlyrisky for more trading content