Tag: uptrend
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Momentum and Rate of Change (ROC)
Momentum and rate of change (ROC) are simple technical analysis indicators showing the difference between today’s closing price and the close N days ago. Momentum is simply the difference, Momentum = Close(today) – Close(N days ago) Rate of change scales by the old close, so as to represent the increase as a fraction, …
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The Implications of Price Gaps
Price gaps are simply areas on the bar chart where no trading has taken place. In a uptrend, prices open above the highest price of the previous day, leaving a gap or open space on the chart that is not filled during the day. In a downtrend, the day’s highest price is below the previous…