Compact mode
Moving Average Convergence Divergence (MACD) vs Rate Of Change (ROC) vs Stochastic Oscillator
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.
Stochastic Oscillator- Momentum And Trend ReversalStochastic Oscillator is known for Momentum And Trend Reversal.
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
Stochastic Oscillator
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)Stochastic OscillatorComplexity Level 🧑
Indicates the level of expertise required to effectively use the indicatorMoving Average Convergence Divergence (MACD)Rate of Change (ROC)Stochastic OscillatorPopularity 🏆
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
Stochastic Oscillator- HighThe popularity of Stochastic Oscillator among traders is considered High. Widely used and trusted indicators in the trading community
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
Stochastic Oscillator- Developed by George Lane
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
Stochastic Oscillator- It's as unpredictable as a teenager's mood swings
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.
Stochastic Oscillator- 5-MinuteStochastic Oscillator is most effective for 5-Minute timeframes. Indicators optimized for analyzing rapid market movements on a 5-minute timeframe
- 15-MinuteStochastic Oscillator is most effective for 15-Minute timeframes. Indicators suited for analyzing market data on a 15-minute timeframe
- 1-HourStochastic Oscillator is most effective for 1-Hour timeframes. Indicators optimized for analyzing market data on a 1-hour timeframe
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)Stochastic OscillatorSignal Generation 📊
Describes the methods by which the indicator produces trading signalsFor all*- CrossoversIndicators that generate signals when one line crosses another, indicating trend changes
Moving Average Convergence Divergence (MACD)- DivergencesMoving Average Convergence Divergence (MACD) generates trading signals through Divergences. Indicators that show discrepancies between price and indicator movements, suggesting potential reversals
Rate of Change (ROC)- DivergencesRate of Change (ROC) generates trading signals through Divergences. Indicators that show discrepancies between price and indicator movements, suggesting potential reversals
Stochastic Oscillator- ThresholdsStochastic Oscillator generates trading signals through Thresholds. Indicators that generate signals when certain predefined levels or conditions are met
Customization Options 🔧
Lists the parameters that can be adjusted to fine-tune the indicatorFor all*Moving Average Convergence Divergence (MACD)Stochastic Oscillator
Usage Comparison
For whom 👥
The target audience or user group for the trading indicatorMoving Average Convergence Divergence (MACD)Rate of Change (ROC)Stochastic OscillatorPurpose 📈
The primary purpose or application of the trading indicatorMoving Average Convergence Divergence (MACD)Rate of Change (ROC)Stochastic Oscillator
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
Stochastic Oscillator- Effective For Ranging MarketsIndicators specialized in analyzing non-trending, range-bound markets
- Easy To UnderstandIndicators with straightforward concepts and interpretations
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.
Stochastic Oscillator- Can Give False Signals In Strong Trends
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)Stochastic OscillatorVersatility Score 🔀
A score indicating the adaptability of the trading indicator across different markets and timeframesMoving Average Convergence Divergence (MACD)Rate of Change (ROC)Stochastic OscillatorCustomization 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.
Stochastic Oscillator- 7The customization score for Stochastic Oscillator is 7 out of 10.
Score ⭐
The overall score of the trading indicator based on various performance metricsMoving Average Convergence Divergence (MACD)Rate of Change (ROC)Stochastic Oscillator
Alternatives to Moving Average Convergence Divergence (MACD)
Elder-Ray Index
Known for Combining Trend And Momentum
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is more customizable than Rate of Change (ROC)
Relative Strength Index (RSI)
Known for Momentum Measurement
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is more reliable than Rate of Change (ROC)
Hull Moving Average (HMA)
Known for Reducing Lag In Moving Averages
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is more reliable than Rate of Change (ROC)
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is more customizable than Rate of Change (ROC)
Stochastic RSI
Known for Combining Strengths Of Two Popular Indicators
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is more reliable than Rate of Change (ROC)
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is more versatile than Rate of Change (ROC)
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is more customizable than Rate of Change (ROC)
Pivot Points
Known for Identifying Potential Reversal Points
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is more versatile than Rate of Change (ROC)
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is rated higher overall than Rate of Change (ROC)
Triple Exponential Average (TRIX)
Known for Filtering Out Market Noise
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is more customizable than Rate of Change (ROC)