Rate of Chg (Risk-Adjusted) (Indicator)
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.