Compact mode
Moving Average Convergence Divergence (MACD) vs Rate Of Change (ROC) vs Awesome Oscillator (AO)
Table of content
General Information Comparison
Indicator Type 📊
The category or classification of the trading indicator based on its primary function and analysis method.For all*Asset Class 💰
Specifies the financial instruments for which the indicator is most commonly usedFor all*- StocksIndicators optimized for analyzing and predicting stock price movements in equity markets.
- ForexIndicators optimized for currency pair trading in the foreign exchange market.
- CryptocurrenciesIndicators tailored for the volatile and 24/7 nature of cryptocurrency trading.
Rate of Change (ROC)Known for 💭
The unique selling point or distinguishing feature of the trading indicatorMoving Average Convergence Divergence (MACD)- Trend Strength And DirectionMoving Average Convergence Divergence (MACD) is known for Trend Strength And Direction.
Rate of Change (ROC)- Speed Of Price ChangesRate of Change (ROC) is known for Speed Of Price Changes.
Awesome Oscillator (AO)- Simplicity And EffectivenessAwesome Oscillator (AO) is known for Simplicity And Effectiveness.
Made In 🌍
The country or origin of the trading indicatorMoving Average Convergence Divergence (MACD)- 1960SMoving Average Convergence Divergence (MACD) was developed in 1960S. Trading indicators developed during a decade of economic growth and social change
Rate of Change (ROC)- UnknownRate of Change (ROC) was developed in Unknown. Indicators with undisclosed country of origin, focusing on performance
Awesome Oscillator (AO)- United StatesAwesome Oscillator (AO) was developed in United States. Indicators developed in the USA, reflecting American trading principles
Characteristics Comparison
Lagging or Leading 🏁
Indicates whether the trading indicator is a lagging or leading type, reflecting its predictive nature.Moving Average Convergence Divergence (MACD)- LaggingMoving Average Convergence Divergence (MACD) is a Lagging indicator. Indicators that confirm trends after they have started
Rate of Change (ROC)Awesome Oscillator (AO)Complexity Level 🧑
Indicates the level of expertise required to effectively use the indicatorMoving Average Convergence Divergence (MACD)Rate of Change (ROC)Awesome Oscillator (AO)Popularity 🏆
Indicates how widely used and recognized the indicator is in the trading communityMoving Average Convergence Divergence (MACD)- HighThe popularity of Moving Average Convergence Divergence (MACD) among traders is considered High. Widely used and trusted indicators in the trading community
Rate of Change (ROC)- MediumThe popularity of Rate of Change (ROC) among traders is considered Medium. Indicators with balanced adoption and potential effectiveness
Awesome Oscillator (AO)- MediumThe popularity of Awesome Oscillator (AO) among traders is considered Medium. Indicators with balanced adoption and potential effectiveness
Facts Comparison
Interesting Fact 💡
An intriguing or lesser-known fact about the trading indicatorMoving Average Convergence Divergence (MACD)- Developed by Gerald Appel
Rate of Change (ROC)- One of the oldest momentum indicators still in use today
Awesome Oscillator (AO)- Created by Bill Williams
Sarcastic Fact 😉
A humorous or ironic observation about the trading indicatorMoving Average Convergence Divergence (MACD)- Even your grandma knows this one but still can't use it properly
Rate of Change (ROC)- Jokingly called the 'market speedometer' by some traders
Awesome Oscillator (AO)- It's like a mood ring for the market's emotional state
Application Comparison
Timeframe 🕑
The time intervals or periods for which the trading indicator is most effective or commonly used.Moving Average Convergence Divergence (MACD)- DailyMoving Average Convergence Divergence (MACD) is most effective for Daily timeframes. Indicators optimized for daily chart analysis, suitable for swing and position traders.
- WeeklyMoving Average Convergence Divergence (MACD) is most effective for Weekly timeframes. Indicators optimized for weekly chart analysis, balancing short-term noise and long-term trends.
Rate of Change (ROC)- AnyRate of Change (ROC) is most effective for Any timeframes. Flexible indicators adaptable to various trading timeframes, offering versatility in analysis.
Awesome Oscillator (AO)- DailyAwesome Oscillator (AO) is most effective for Daily timeframes. Indicators optimized for daily chart analysis, suitable for swing and position traders.
- WeeklyAwesome Oscillator (AO) is most effective for Weekly timeframes. Indicators optimized for weekly chart analysis, balancing short-term noise and long-term trends.
Technical Details Comparison
Calculation Method 🧮
The mathematical or analytical approach used to compute the trading indicator's values.Moving Average Convergence Divergence (MACD)Rate of Change (ROC)Awesome Oscillator (AO)Signal Generation 📊
Describes the methods by which the indicator produces trading signalsFor all*- CrossoversIndicators that generate signals when one line crosses another, indicating trend changes
- DivergencesIndicators that show discrepancies between price and indicator movements, suggesting potential reversals
Customization Options 🔧
Lists the parameters that can be adjusted to fine-tune the indicatorFor all*Moving Average Convergence Divergence (MACD)
Usage Comparison
For whom 👥
The target audience or user group for the trading indicatorMoving Average Convergence Divergence (MACD)Rate of Change (ROC)Awesome Oscillator (AO)Purpose 📈
The primary purpose or application of the trading indicatorMoving Average Convergence Divergence (MACD)Rate of Change (ROC)Awesome Oscillator (AO)
Evaluation Comparison
Pros 👍
Advantages of using the trading indicatorMoving Average Convergence Divergence (MACD)- Effective For Trend Identification
- Useful In Ranging Markets
Rate of Change (ROC)- Simple To Understand And UseOffers straightforward analysis, making it accessible for traders of all levels
- Effective For Identifying Overbought/Oversold Conditions
Awesome Oscillator (AO)- Easy To Interpret
- Helps Identify Momentum ShiftsUseful for spotting changes in market momentum, helping traders time entries and exits
Cons 👎
Disadvantages or limitations of the trading indicatorMoving Average Convergence Divergence (MACD)- Can Produce False Signals In Choppy MarketsIndicators that minimize false signals in erratic or indecisive market conditions Click to see all.
- Lagging IndicatorIndicators that follow price action, potentially delaying trading signals in fast-moving markets. Click to see all.
Rate of Change (ROC)- Can Produce False Signals In Ranging Markets
- Sensitive To Sudden Price ChangesRefers to indicators that may produce unreliable signals during rapid market movements. Click to see all.
Awesome Oscillator (AO)- Can Be Late In Signaling Trend ChangesIndicators designed to identify potential trend changes as early as possible. Click to see all.
- Requires Confirmation From Price ActionDescribes indicators that need validation from actual price movements before signals are considered reliable. Click to see all.
Performance Metrics Comparison
Ease of Use Score 💻
A score representing how user-friendly and intuitive the trading indicator isMoving Average Convergence Divergence (MACD)Rate of Change (ROC)Awesome Oscillator (AO)Versatility Score 🔀
A score indicating the adaptability of the trading indicator across different markets and timeframesMoving Average Convergence Divergence (MACD)Rate of Change (ROC)Awesome Oscillator (AO)Customization Score 🔧
A score representing the degree of customization available for the trading indicatorMoving Average Convergence Divergence (MACD)- 7The customization score for Moving Average Convergence Divergence (MACD) is 7 out of 10.
Rate of Change (ROC)- 6.5The customization score for Rate of Change (ROC) is 6.5 out of 10.
Awesome Oscillator (AO)- 6.5The customization score for Awesome Oscillator (AO) is 6.5 out of 10.
Score ⭐
The overall score of the trading indicator based on various performance metricsMoving Average Convergence Divergence (MACD)Rate of Change (ROC)Awesome Oscillator (AO)
Alternatives to Moving Average Convergence Divergence (MACD)
Slow Stochastic
Known for Momentum Measurement
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is more reliable than Moving Average Convergence Divergence (MACD)
Directional Movement Index (DMI)
Known for Strength Of Price Movement
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is more reliable than Moving Average Convergence Divergence (MACD)
🔧
is more customizable than Moving Average Convergence Divergence (MACD)
Exponential Moving Average (EMA)
Known for Smooth Price Movements
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is more reliable than Moving Average Convergence Divergence (MACD)
💻
is easier to use than Moving Average Convergence Divergence (MACD)
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is rated higher overall than Moving Average Convergence Divergence (MACD)
Keltner Channels
Known for Combining Moving Averages With Volatility
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is more reliable than Moving Average Convergence Divergence (MACD)
🔧
is more customizable than Moving Average Convergence Divergence (MACD)
Hull Moving Average (HMA)
Known for Reducing Lag In Moving Averages
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is more reliable than Moving Average Convergence Divergence (MACD)
Simple Moving Average (SMA)
Known for Smooth Price Movements
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is more reliable than Moving Average Convergence Divergence (MACD)
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is easier to use than Moving Average Convergence Divergence (MACD)