This leading Rate of Change Oscillator indicator provides advance indication of coming weakness or strength. The chart below, a 1000 Tick GBPUSD Forex, illustrates coming weakness when the red line on the indicator cuts under the blue line. The "weak" area warns of potential pull backs or softness in the market. Often when the red line moves back up to the blue it is followed by selling. The yellow down arrows points out this action. Market strength is indicated when the red line crosses back over the blue. It should also be noted that a positive yellow histogram suggests the market's trend is up.
On the chart below we have the CTG Futures ROC/OS Indicator working on a short time frame (3 minute) T-Bond market. Again notice how the indicator provides advance notice of impending market strength as the red line crosses over the blue line. Stay long until the the red line crosses under the blue.
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