ROC divergence

The Rate Of Change Divergence indicator is used to identify a possible Bullish Trend Shift.

The rules are:

1. ROC (10) is rising.
2. ROC (30) is falling.
3. RSI (14) < 50

When all the rules are triggered this is indicated with a blue circle below the candle.
Note that this doesn't give you a Buy signal; you also have to get a confirmation from
the price graph, e.g by crossing a trend line .

This has become a favourite indicator of mine.
I think it gives a very strong indication that a Bullish trend shift is in the making.
I like to use it together with the Pocket Pivot indicator.

Idea curtesy: Tobbe Rosèn.
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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