Relative Strength Index (RSI) vs Rate of Change (ROC) vs On-Balance Volume (OBV)
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Relative Strength Index (RSI) vs Rate Of Change (ROC) vs On-Balance Volume (OBV)

Table of content

General Information Comparison

Characteristics Comparison

  • Lagging or Leading 🏁
    Indicates whether the trading indicator is a lagging or leading type, reflecting its predictive nature.
    For all*

  • Complexity Level 🧑
    Indicates the level of expertise required to effectively use the indicator
    For all*

  • Popularity 🏆
    Indicates how widely used and recognized the indicator is in the trading community
    Relative Strength Index (RSI)
    • High
      The popularity of Relative Strength Index (RSI) among traders is considered High. Widely used and trusted indicators in the trading community
    Rate of Change (ROC)
    • Medium
      The popularity of Rate of Change (ROC) among traders is considered Medium. Indicators with balanced adoption and potential effectiveness
    On-Balance Volume (OBV)
    • Medium
      The popularity of On-Balance Volume (OBV) 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 indicator
    Relative Strength Index (RSI)
    • Created by J. Welles Wilder
    Rate of Change (ROC)
    • One of the oldest momentum indicators still in use today
    On-Balance Volume (OBV)
    • Developed by Joe Granville

  • Sarcastic Fact 😉
    A humorous or ironic observation about the trading indicator
    Relative Strength Index (RSI)
    • The only thing relative about it is how relatively often it's misused
    Rate of Change (ROC)
    • Jokingly called the 'market speedometer' by some traders
    On-Balance Volume (OBV)
    • It's the gossip column of indicators - always trying to predict the next big move

Application Comparison

  • Timeframe 🕑
    The time intervals or periods for which the trading indicator is most effective or commonly used.
    Relative Strength Index (RSI)
    • 1-Hour
      Relative Strength Index (RSI) is most effective for 1-Hour timeframes. Indicators optimized for analyzing market data on a 1-hour timeframe
    • 4-Hour
      Relative Strength Index (RSI) is most effective for 4-Hour timeframes. Indicators designed for analyzing market data on a 4-hour timeframe
    • Daily
      Relative Strength Index (RSI) is most effective for Daily timeframes. Indicators optimized for daily chart analysis, suitable for swing and position traders.
    Rate of Change (ROC)
    • Any
      Rate of Change (ROC) is most effective for Any timeframes. Flexible indicators adaptable to various trading timeframes, offering versatility in analysis.
    On-Balance Volume (OBV)
    • Daily
      On-Balance Volume (OBV) is most effective for Daily timeframes. Indicators optimized for daily chart analysis, suitable for swing and position traders.

Technical Details Comparison

Evaluation Comparison

  • Pros 👍
    Advantages of using the trading indicator
    Relative Strength Index (RSI)
    • Easy To Interpret
    • Effective For Identifying Reversals
    Rate of Change (ROC)
    • Simple To Understand And Use
      Offers straightforward analysis, making it accessible for traders of all levels
    • Effective For Identifying Overbought/Oversold Conditions
    On-Balance Volume (OBV)
    • Simple To Calculate
    • Confirms Price Trends

  • Cons 👎
    Disadvantages or limitations of the trading indicator
    Relative Strength Index (RSI)
    • Can Remain In Overbought/Oversold Conditions During Strong Trends
    Rate of Change (ROC)
    On-Balance Volume (OBV)
    • Can Be Affected By Large Block Trades

Performance Metrics Comparison

Alternatives to Relative Strength Index (RSI)
Elder-Ray Index
Known for Combining Trend And Momentum
🔧 is more customizable than Rate of Change (ROC)
Hull Moving Average (HMA)
Known for Reducing Lag In Moving Averages
💯 is more reliable than Rate of Change (ROC)
🔧 is more customizable than Rate of Change (ROC)
Stochastic RSI
Known for Combining Strengths Of Two Popular Indicators
💯 is more reliable than Rate of Change (ROC)
🔀 is more versatile than Rate of Change (ROC)
🔧 is more customizable than Rate of Change (ROC)
Heikin Ashi Candlesticks
Known for Smoothing Price Action
Momentum Indicator
Known for Price Velocity
Awesome Oscillator (AO)
Known for Simplicity And Effectiveness
Triple Exponential Average (TRIX)
Known for Filtering Out Market Noise
🔧 is more customizable than Rate of Change (ROC)
Aroon Up And Down
Known for Identifying Potential Trend Changes
Fast Stochastic
Known for Rapid Momentum Shifts
Pivot Points
Known for Identifying Potential Reversal Points
🔀 is more versatile than Rate of Change (ROC)
⭐ is rated higher overall than Rate of Change (ROC)