Compact mode
Relative Strength Index (RSI) vs Rate Of Change (ROC) vs Average True Range (ATR)
Table of content
General Information Comparison
Indicator Type 📊
The category or classification of the trading indicator based on its primary function and analysis method.Relative Strength Index (RSI)Rate of Change (ROC)Average True Range (ATR)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.
- CommoditiesTrading indicators optimized for commodity markets like oil, gold, and agricultural products.
Rate of Change (ROC)Known for 💭
The unique selling point or distinguishing feature of the trading indicatorRelative Strength Index (RSI)- Momentum MeasurementRelative Strength Index (RSI) is known for Momentum Measurement.
Rate of Change (ROC)- Speed Of Price ChangesRate of Change (ROC) is known for Speed Of Price Changes.
Average True Range (ATR)- Volatility Without DirectionAverage True Range (ATR) is known for Volatility Without Direction.
Made In 🌍
The country or origin of the trading indicatorRelative Strength Index (RSI)Rate of Change (ROC)Average True Range (ATR)
Characteristics Comparison
Lagging or Leading 🏁
Indicates whether the trading indicator is a lagging or leading type, reflecting its predictive nature.Relative Strength Index (RSI)Rate of Change (ROC)Average True Range (ATR)Complexity Level 🧑
Indicates the level of expertise required to effectively use the indicatorFor all*Popularity 🏆
Indicates how widely used and recognized the indicator is in the trading communityRelative Strength Index (RSI)Rate of Change (ROC)Average True Range (ATR)
Facts Comparison
Interesting Fact 💡
An intriguing or lesser-known fact about the trading indicatorRelative Strength Index (RSI)- Created by J. Welles Wilder
Rate of Change (ROC)- One of the oldest momentum indicators still in use today
Average True Range (ATR)- Part of Welles Wilder's indicators
Sarcastic Fact 😉
A humorous or ironic observation about the trading indicatorRelative 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
Average True Range (ATR)- It's the drama meter of the market - higher values mean more excitement
Application Comparison
Timeframe 🕑
The time intervals or periods for which the trading indicator is most effective or commonly used.Relative Strength Index (RSI)- 1-HourRelative Strength Index (RSI) is most effective for 1-Hour timeframes. Indicators optimized for analyzing market data on a 1-hour timeframe Click to see all.
- 4-HourRelative Strength Index (RSI) is most effective for 4-Hour timeframes. Indicators designed for analyzing market data on a 4-hour timeframe Click to see all.
- DailyRelative Strength Index (RSI) is most effective for Daily timeframes. Indicators optimized for daily chart analysis, suitable for swing and position traders. Click to see all.
Rate of Change (ROC)Average True Range (ATR)- DailyAverage True Range (ATR) is most effective for Daily timeframes. Indicators optimized for daily chart analysis, suitable for swing and position traders. Click to see all.
- WeeklyAverage True Range (ATR) is most effective for Weekly timeframes. Indicators optimized for weekly chart analysis, balancing short-term noise and long-term trends. Click to see all.
Technical Details Comparison
Calculation Method 🧮
The mathematical or analytical approach used to compute the trading indicator's values.Relative Strength Index (RSI)Rate of Change (ROC)Average True Range (ATR)Signal Generation 📊
Describes the methods by which the indicator produces trading signalsRelative Strength Index (RSI)- ThresholdsRelative Strength Index (RSI) generates trading signals through Thresholds. Indicators that generate signals when certain predefined levels or conditions are met Click to see all.
- DivergencesRelative Strength Index (RSI) generates trading signals through Divergences. Indicators that show discrepancies between price and indicator movements, suggesting potential reversals Click to see all.
Rate of Change (ROC)- CrossoversRate of Change (ROC) generates trading signals through Crossovers. Indicators that generate signals when one line crosses another, indicating trend changes Click to see all.
- DivergencesRate of Change (ROC) generates trading signals through Divergences. Indicators that show discrepancies between price and indicator movements, suggesting potential reversals Click to see all.
Average True Range (ATR)Customization Options 🔧
Lists the parameters that can be adjusted to fine-tune the indicatorFor all*Relative Strength Index (RSI)
Usage Comparison
For whom 👥
The target audience or user group for the trading indicatorRelative Strength Index (RSI)Rate of Change (ROC)Average True Range (ATR)Purpose 📈
The primary purpose or application of the trading indicatorRelative Strength Index (RSI)Rate of Change (ROC)Average True Range (ATR)
Evaluation Comparison
Pros 👍
Advantages of using the trading indicatorRelative Strength Index (RSI)- Easy To Interpret
- Effective For Identifying Reversals
Rate of Change (ROC)- Simple To Understand And UseOffers straightforward analysis, making it accessible for traders of all levels Click to see all.
- Effective For Identifying Overbought/Oversold Conditions
Average True Range (ATR)- Useful For Position Sizing
- Helps Set Stop-Losses
Cons 👎
Disadvantages or limitations of the trading indicatorRelative Strength Index (RSI)- Can Remain In Overbought/Oversold Conditions During Strong Trends
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.
Average True Range (ATR)
Performance Metrics Comparison
Reliability Score 💯
A score indicating the overall reliability of the trading indicatorRelative Strength Index (RSI)Rate of Change (ROC)Average True Range (ATR)Ease of Use Score 💻
A score representing how user-friendly and intuitive the trading indicator isRelative Strength Index (RSI)Rate of Change (ROC)Average True Range (ATR)Versatility Score 🔀
A score indicating the adaptability of the trading indicator across different markets and timeframesRelative Strength Index (RSI)Rate of Change (ROC)Average True Range (ATR)Customization Score 🔧
A score representing the degree of customization available for the trading indicatorFor all*Score ⭐
The overall score of the trading indicator based on various performance metricsRelative Strength Index (RSI)Rate of Change (ROC)Average True Range (ATR)
Alternatives to Relative Strength Index (RSI)
Chande Momentum Oscillator (CMO)
Known for Momentum Measurement🔧 is more customizable than Relative Strength Index (RSI)
Elder-Ray Index
Known for Combining Trend And Momentum🔀 is more versatile than Relative Strength Index (RSI)
🔧 is more customizable than Relative Strength Index (RSI)
Stochastic Oscillator
Known for Momentum And Trend Reversal🔧 is more customizable than Relative Strength Index (RSI)
Exponential Moving Average (EMA)
Known for Smooth Price Movements💯 is more reliable than Relative Strength Index (RSI)
🔧 is more customizable than Relative Strength Index (RSI)
⭐ is rated higher overall than Relative Strength Index (RSI)
Woodies CCI
Known for Modification Of Traditional CCI🔧 is more customizable than Relative Strength Index (RSI)
Money Flow Index (MFI)
Known for Volume And Price Movements🔧 is more customizable than Relative Strength Index (RSI)
Average Directional Index (ADX)
Known for Trend Strength Without Direction💯 is more reliable than Relative Strength Index (RSI)