How to Find Changes between Positive and Negative Momentum with ROC

The Rate of Change (ROC) indicator offered by our proprietary Strategy Designer editor can help traders find positive and negative momentum changes in the cryptocurrency market.

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In essence, momentum trading represents the tendency of the trend to continue in the same direction for a given period of time. 

ROC Momentum Trading

The Strategy Designer supports the following entry rules for the Rate of Change (ROC) indicator:

1. Buy signal helps you get into a position when the ROC crosses into positive territory. Or, in other words, when the ROC oscillator crosses above the zero line.
2. Sell signal helps you exit a position when the ROC crosses into negative territory. Or, in other words, when the ROC oscillator crosses below the zero line.

The ROC indicator will identify a change in momentum each time the ROC line crosses above and below the zero line.

Building a Strategy

To build a reliable trading strategy, it’s better to incorporate multiple technical factors, like the MESA, to indicate the direction of the overall market trend.

If the MESA is green, this indicates that we’re in a bullish trend.

So in order to make a trade, the MESA needs to be green and the ROC to cross in positive territory.