Rate of Chg (Risk-Adjusted) (Indicator)

Disclaimer

Input Information

Name Expression Default Description
Price Numeric Close Price used in calculating the Rate Of Change and volatility.
ROCLength Numeric 14 Number of bars to use in the Rate of Change and volatility calculations.
AlertLength Numeric 14 Number of bars to determine the alert criteria.
ColorNormLength Numeric 14 Number of bars over which to normalize the indicator for gradient coloring.
UseGradientColoring Numeric 1 Set to 1 for gradient (blended) coloring; set to 0 for no gradient coloring. This applies to Plot1 only. The zero line plot will be the color set in the indicator properties.
UpColor Numeric Cyan Color to use for indicator values that are relatively high over ColorNormLength bars.  
DnColor Numeric Magenta Color to use for indicator values that are relatively low over ColorNormLength bars.
GridForegroundColor Numeric Black Color to use for numbers in RadarScreen cells when gradient coloring is enabled.

Market Synopsis

This indicator plots the "risk-adjusted" rate of change. To calculate this value, the percentage rate of change is divided by the standard deviation of the percentage rate of change.

By scaling the rate of change by its own volatility, this indicator allows for symbols to be compared on the basis of percentage price change per unit of risk (volatility), rather than on the basis of rate of change alone. This adjustment is intended to account for the fact that the chances of reaching any given level of price change are related to risk (volatility).

For more information on rate of change, see Rate of Chg indicator.

Plot Information

Number Name Default Color Description
Plot1 ROCRA Yellow Plots the “risk-adjusted” Rate of Change as a line.
Plot2 ZeroLine Dark Green Plots a reference line at zero.

When applied to a chart, this indicator displays two plots in a separate subgraph from the price data.

Related Function

RateOfChange

StandardDev