RC (Rate of Change)

Indicator Description

RC (Rate of Change) is a momentum indicator that reflects momentum changes and trend strength in the market by calculating the rate of price change.

Function Information

• Function Name: RC
• Input Parameters: Open
• Parameter Settings: timeperiod1 (default: 21), timeperiod2 (default: 34), timeperiod3 (default: 55)
• Output: arc, rccd

Calculation Principle

RC reflects momentum changes in the market by calculating the rate of price change. When RC is positive, it means the price is rising; when RC is negative, it means the price is falling.

Application Scenarios

1. Momentum change analysis
2. Trend strength judgment
3. Divergence signal identification
4. Trading signal generation

Usage Suggestions

1. RC turning from negative to positive can be seen as a buy signal
2. RC turning from positive to negative can be seen as a sell signal
3. Use in combination with moving averages
4. Pay attention to the use of divergence signals