What is this indicator?
Shows the percentage change in price relative to N candles ago, measuring the speed of price movement as a percentage. A divergence between ROC and price is one of the common signals of trend weakness.
How to read the chart
The indicator moving toward the ends of its range usually signals overbought or oversold conditions; a divergence between price and the indicator is also considered an important signal.
Practical tip
Instead of trading purely off reaching an overbought or oversold zone, first check the overall trend on a higher timeframe and only take signals that align with it.