Rate of Change is considered to be one of the earliest indicators of an impending change in trend
Market players often talk casually about market sentiment. Stock prices can swing way beyond rational levels once market sentiment gains momentum. Indeed, the market can be gripped, at times, by violent mood swings.
Technical analysts try to quantify the ebbs and flows of this market momentum. There are many different indicators that can be used to judge whether market sentiment is strong or weak.
One of the simplest tools is also among the most effective. It
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