Forex encyclopedia

ROC indicator relates to anticipating figures, however, in terms of logic, if price factor is removed from calculation, the indicator stops operation and anticipation does not work as well. Still the point of anticipation is the following: when trend starts losing its force and slows down, the indicator's values begin pivoting, whereas price still can continue its movement along trend. In other words, as many other oscillators, ROC shows divergence and convergence. Of course, many things depend on parameters chosen by trader.

Parabolic SAR is the technical indicator developed by Welles Wilder for analyzing trend movements. The first time it was announced in a famous book “ New Concepts in Technical Trading Systems” published in 1976. SAR stands for as “stop and reverse”. Parabolic SAR is one of a few indicators that signalize about closing of positions. In many respects Parabolic is similar to a moving average with the only difference that SAR can change position against price. Under ascending tendency, the indicator is drawn under prices (candles, bars), under descending tendency it is put above prices. When price crosses Parabolic line, reversal of the indicator takes place.