ROC divergence

The Rate Of Change Divergence indicator is used to identify a possible Bullish Trend Shift.

The rules are:

1. ROC(10) is rising.
2. ROC(30) is falling.
3. RSI(14) < 50

When all the rules are triggered this is indicated with a blue circle below the candle.
Note that this doesn't give you a Buy signal; you also have to get a confirmation from
the price graph, e.g by crossing a trend line.

This has become a favourite indicator of mine.
I think it gives a very strong indication that a Bullish trend shift is in the making.
I like to use it together with the Pocket Pivot indicator.

Idea curtesy: Tobbe Rosèn.