Using spreadsheet to produce ROC indicator (Rate Of Change)

Stock Exchange and Market Analysis

Technical Analysis (13)

The calculated trend line of the so-called rate of change - ROC (Rate of change) is based on today's closing price minus the closing price n days ago and then divided by the closing price n days ago. It implied the degree of price fluctuations between n days , which can be observed in the process of rising and falling. When the ROC is positive , it indicates that it is in a strong upward stage . ROC is beginning to level off. , indicating that the rising strength returns to the situation before n , until the ROC goes down but still has a positive value , indicating that it has entered the end of the uptrend , once the ROC becomes negative , it has come to the head zone , the stock price may reverse at any time.  The same reason , when the ROC is negative ,It indicates that the stock price is in a weak stage , and the downtrend is not limited . When the ROC starts to level off , it indicates that the decline has returned to the situation before the n- day . When the ROC goes up but still maintains a negative value, it indicates that it has entered the end of the downturn , once the ROC becomes positive , indicates to the bottom of the zone , the share price could flip at any time up . today, let us according to ROC import mathematical formulas Excel spreadsheet :
ROCn _t : The price change rate of the nth day on the tth day , the detailed formula is as follows :
ROCn_t = ( C_t - C_t-n ) / C_t-n
  C _t = closing price on the tth day
  C _t-n = the closing price of the t-n day
In order for the rate of change indicators can be more meaningful , n values can not be taken too small or too big. If too small it will form a small swings , not the specific observation ; if too much, it may oscillate up and down sharply , adversely analysis . Usually 10 as a reference value , two weeks in order to observe short-term stock price up or down trend , and as a basis for the market judged . Since the ROC when fares can be as large infinity , down time and can be as small infinitesimal ( infinitely large negative value ). in general words , we will be based on property stocks , and observing at least one year of candlestick graph , the ROC draw horizontal lines world index areas , the definition of a normal area , Going district , overbought zone , fell oversold zone and area as Reference to and from stocks .Finally, in order to facilitate the reader to use the ROC index , the author still uses the model of Juyang (template), and continues to produce the analysis sample in Excel format for readers' reference :

template13.xlsx

In addition to this sample in the " Historical Prices " provide spreadsheet ROC reference index outside , and in the second spreadsheet " stock chart " to provide the candlestick chart , volume and ROC trend line for the reader . If there are any mistakes, please don't hesitate to correct me . Thank you !
In addition , the author made EXCEL spreadsheet for various indicators ( moving average , RSI, BIAS, stochastic KD line, William indicator , MACD, CDP and Bollinger band) for stock analysis , and further produced candlestick chart, figure charts and other technical indicators on the same chart , interested readers can refer to Ref.1.
Reference (Ref):
1. Investment Financial Notes - Stock Technical Analysis