XROC2_VG: Comparing and Smoothing Two Rate-of-Change Indicators

Summary

XROC2_VG plots two selected price-change indicators, such as Momentum or different forms of Rate of Change, in one window. It supports several related calculations: absolute price change, percentage change, and price ratios on different scales. The resulting series are passed through an averaging algorithm to reduce random noise and produce smoother readings. The implementation uses the CJJMA class from a separate smoothing library.

The document explains the indicator’s construction and attributes its authorship to Vladislav Goshkov, with an initial MQL4 implementation published in 2006. It does not define trading signals, explain how to select the two indicator types or periods, or provide backtest evidence. Smoothing may make plotted values easier to read, but the text does not quantify its effect on lag or predictive performance. The indicator is therefore a visualization and signal-processing component rather than a complete trading strategy.

Key ideas

• The indicator plots two selected Momentum or Rate-of-Change series together.
• Supported calculations express price change as an absolute difference, percentage, or ratio.
• An averaging algorithm is applied to reduce noise and smooth the output.
• The document describes implementation details but gives no trading rules or performance tests.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.