Rate of Change - ROC

🎯 Overview
This is an advanced Rate of Change - ROC indicator that measures percentage price movement over time, combined with dynamic moving average filtering. Unlike basic ROC implementations, this version features gradient momentum zones, multiple color themes, and a clear signal dashboard for precise momentum velocity identification.

🧩 Core Components
1. ⚙️ Technical Foundation
📊 Primary Calculation: Uses TradingView's built-in ta.roc() function which calculates percentage change between current price and price N periods ago

📈 Dual Analysis Components:

ROC Line: Percentage change oscillator

MA Filter: Customizable moving average acting as momentum trend line

Momentum Zones: Gradient fills for strong positive and strong negative momentum

⚡ Velocity Measurement: Unique ability to quantify the speed of price movement as a percentage

2. 🎛️ Configuration Parameters
📏 ROC Length: Default 35 periods (optimized for momentum detection)

🔄 MA Filter Settings:

Length: Customizable (default 365 periods)

Type: 6 options available (EMA, SMA, RMA, WMA, VWMA, HMA)

🎨 Color Themes: 5 visual schemes consistent with your indicator suite:

Classic, Modern, Robust, Accented, Monochrome

📊 Signal Interpretation:

🟢 BULLISH: ROC > MA Filter (momentum accelerating upward)

🔴 BEARISH: ROC < MA Filter (momentum accelerating downward)

🚀 STRONG BULLISH: ROC > 40% (extreme positive momentum)

📉 STRONG BEARISH: ROC < -20% (extreme negative momentum)

3. 🎨 Visual Elements
🚨 Gradient Zones:

Strong Bullish zone : Green gradient intensifying toward higher percentages

Strong Bearish zone : Red gradient intensifying toward lower percentages

📋 Dashboard Display: Top-right status indicator showing "⬆️ Bullish" or "⬇️ Bearish"

📊 Dynamic Coloring: ROC line changes color based on position relative to MA

⚡ Zero Line Reference: Natural equilibrium at 0% change

⚡ Trading Applications
📈 Primary Uses:
🎯 Momentum Velocity Measurement:

ROC > MA = Accelerating bullish momentum

ROC < MA = Accelerating bearish momentum

💪 Momentum Strength Quantification:

Higher positive percentages = Stronger uptrend acceleration

Lower negative percentages = Stronger downtrend acceleration

Measures rate of change rather than just direction

🚨 Extreme Momentum Signals:

Strong Bullish: (rapid price appreciation)

Strong Bearish: (rapid price depreciation)

📊 Zone Analysis:
🟢 Strong Bullish Zone :

Green gradient fills

Indicates rapid price acceleration upward

Often precedes consolidation or pullback

🔴 Strong Bearish Zone :

Red gradient fills

Indicates rapid price acceleration downward

Often precedes bounce or reversal

🟡 Equilibrium: Yellow MA line acts as momentum trend filter

🎨 Customization Options
👁️ Display Features:
📊 Dual Components: Always shows both ROC line and MA filter
🎨 Gradient Visualization: Automatic fill for extreme momentum conditions
📋 Status Dashboard: Clear bullish/bearish momentum acceleration indication
📈 Customizable MA: Choose from 6 different moving average types
📏 Adjustable Thresholds: 40% and -20% levels optimized for ROC analysis

🎨 Visual Themes: (Consistent suite)
🎨 Classic: Green/Red (traditional momentum colors)

🚀 Modern: Cyan/Purple (contemporary)

💪 Robust: Amber/Deep Purple (high contrast)

🌈 Accented: Purple/Magenta (vibrant)

⚫⚪ Monochrome: Light Gray/Dark Gray (minimalist)

🔔 Alert System
🟢 LONG Alert: Triggers when ROC crosses above MA
🔴 SHORT Alert: Triggers when ROC crosses below MA
📧 Format: Includes ticker symbol for tracking

⚡ Key Advantages
✅ Strengths:
🎯 Velocity-Based Analysis: Measures speed of price movement, not just direction
💪 Percentage-Based: Provides intuitive understanding of momentum strength
👁️ Trend Acceleration Identification: MA filter shows when momentum is accelerating/decelerating
🔄 Flexible Timeframes: 35-period default optimized for momentum detection
📊 Professional Dashboard: Immediate momentum acceleration status

📊 Optimal Settings:
⚡ Short-term Momentum: ROC Length 10-20, MA Length 20-50
📊 Medium-term Momentum: ROC Length 20-35, MA Length 50-100
📈 Long-term Momentum: ROC Length 35-50, MA Length 100-365

🏆 Unique Features:
🎯 Percentage-Based Measurement: Shows exact rate of price change
📊 Asymmetric Thresholds: 40% bullish / -20% bearish (reflects typical market asymmetry)
🎨 Consistent Design: Matches your indicator family aesthetics
📋 Momentum Dashboard: Quick visual confirmation of acceleration/deceleration
🔧 Speed Analysis: Focuses on velocity rather than just position

🔄 Trading Strategies
1. Momentum Acceleration Strategy:
Go LONG when ROC crosses above MA with ROC > 0%

Go SHORT when ROC crosses below MA with ROC < 0%

Strong signals when crossing occurs in extreme zones

2. Velocity Divergence:
Price makes higher high, ROC makes lower high → Momentum divergence (trend weakening)

Price makes lower low, ROC makes higher low → Momentum divergence (downtrend losing steam)

3. Trend Acceleration Detection:
Rising ROC above MA = Uptrend accelerating

Falling ROC below MA = Downtrend accelerating

Flat ROC near MA = Trend consolidation

📈 Performance Tips
Context Matters: High ROC during strong trends is normal, during ranges may signal exhaustion

Zero Line Cross: ROC crossing 0% often signals trend change

Extreme Readings: ROC > 40% often precedes consolidation, ROC < -20% often precedes bounce

Timeframe Alignment: Use consistent periods across charts for comparable readings

Confirmation: Combine with price structure and volume for highest probability trades

This enhanced ROC indicator provides professional-grade momentum velocity analysis with intuitive visualization, allowing traders to quantify the speed of price movements, identify acceleration/deceleration phases, and filter signals through the customizable moving average for precise momentum-based trading decisions! 📊⚡