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<h2 class="heading-2 ace-line old-record-id-doxuspjx0NOnFB6shv7s2KIKoVc"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusvPPg1npHI4wB2cWosFftbe" data-list="bullet"><div><span style="font-size: 16px;">The Oscillator (OSC) is a momentum-based technical analysis tool that measures the speed of price changes and helps identify overbought and oversold conditions.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusDKRTXvQkIKjMw6In0JseUX" data-list="bullet"><div><span style="font-size: 16px;">The OSC uses a centerline to distinguish bullish from bearish conditions: readings above the centerline indicate bullish conditions, while readings below it indicate bearish conditions.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusx0N4L0yTexBhmRUfgJRnLe" data-list="bullet"><div><span style="font-size: 16px;">Divergence is one of the most useful oscillator signals and can provide an early warning of a potential trend reversal.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus50PzHQKoXJDn52Ga7pDcuw" data-list="bullet"><div><span style="font-size: 16px;">Oscillators are suited to range-bound markets, while trend indicators are suited to directional markets. Combining the two can improve analysis.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusIFjYLMYcCBy08DVF5bZ2Td" data-list="bullet"><div><span style="font-size: 16px;">MEXC supports the OSC for U.S. stock trading, allowing users to apply the strategies in this guide directly through its charting tools.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMnTyTT4U91aPTiJoOelAah"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusEDL6AG1EW84FjWuub49wog"><strong>1. What Is an Oscillator? </strong></h2><div class="ace-line ace-line old-record-id-doxusIO9MozLEAJ4ezSV15Rizde"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqfzEWozamMpvZWAT1IV8Pg"><span style="font-size: 16px;">Oscillators are among the most widely used tools in technical analysis. They measure the speed and magnitude of changes in an asset's price, which is why they are also known as momentum indicators. An oscillator typically consists of upper and lower boundaries and an indicator line that fluctuates between them. Traders assess the line's position to determine whether the market is overbought or oversold.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQ3uJL4MSpuF9HbIlRlBllg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHbqQGRk7Q5QS2mWhV5aikc"><span style="font-size: 16px;">The Oscillator (OSC) is calculated as the ratio of the current day's closing price to the average closing price over a specified number of preceding trading days, typically expressed as a percentage. The OSC has a centerline of 100. A reading above 100 means the price is above its recent average, indicating bullish conditions. A reading below 100 means the price is below its recent average, indicating bearish conditions.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGf2rDY2QN9mtXQe8aSRIed"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusnh4la0V3XHpk8ioI0Xavng"><span style="font-size: 16px;">When trading U.S. stocks on <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>, you can add the OSC directly to the price chart and combine it with other analysis tools to develop a trading strategy.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusPqkogbEN4NKWkRtinPkFDg"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusMHdf1opiBDTsv8MYWzvrvg"><span style="font-size: 16px;">*BTN-<strong>Trade U.S. Stocks</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">https://www.mexc.com/trade-stocks</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus7Luveuy8VGqwnSKfLaOCDd"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"2462a15f-8e54-45ac-9e68-b1f81174d50e","height":1412,"width":2938,"currHeight":1412,"currWidth":2938,"natrualHeight":1412,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FTemSbI5GwohRHCxVUFCumvr8swf%2F%3Fpreview_type%3D16","file_token":"TemSbI5GwohRHCxVUFCumvr8swf","image_type":"image/png","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgEhPkHeByaaujXwVbRIXAPf"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261112103417356PIf2k8ZrhClXSr.png" data-single-block="true" data-snapshot="eyJ0eXBlIjoiaW1hZ2UiLCJwYXJlbnRfaWQiOiJPTk1VZG14ajRvdk03RHhTVkZidWFiSE5zYmgiLCJjb21tZW50cyI6W10sInJldmlzaW9ucyI6W10sImxvY2tlZCI6ZmFsc2UsImhpZGRlbiI6ZmFsc2UsImF1dGhvciI6Ijc2MDMyMTcwNjc1MzMxNDM0NzYiLCJhaV9leHRyYSI6eyJnZW5fc291cmNlcyI6WzFdfSwiYWxpZ24iOiIiLCJpbWFnZSI6eyJ0b2tlbiI6IlRlbVNiSTVHd29oUkhDeFZVRkN1bXZyOHN3ZiIsIm1pbWVUeXBlIjoiaW1hZ2UvcG5nIiwic2l6ZSI6MSwic2NhbGUiOjEsIndpZHRoIjoyOTM4LCJoZWlnaHQiOjE0MTIsIm5hbWUiOiJpbWFnZS5wbmciLCJjcm9wIjpbMCwwLDAsMF0sInJvdGF0aW9uIjowLCJjYXB0aW9uIjp7InRleHQiOnsiYXBvb2wiOnsibmV4dE51bSI6MCwibnVtVG9BdHRyaWIiOm51bGx9LCJpbml0aWFsQXR0cmlidXRlZFRleHRzIjp7ImF0dHJpYnMiOm51bGwsInRleHQiOm51bGx9fX19LCJhcmVhX2NvbW1lbnRzIjpudWxsfQ==" data-suite="eyJmaWxlVG9rZW4iOiJUZW1TYkk1R3dvaFJIQ3hWVUZDdW12cjhzd2YiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdFaFBrSGVCeWFhdWpYd1ZiUklYQVBmIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9UZW1TYkk1R3dvaFJIQ3hWVUZDdW12cjhzd2YvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/TemSbI5GwohRHCxVUFCumvr8swf/?mount_node_token=doxlgEhPkHeByaaujXwVbRIXAPf&mount_point=docx_image" data-width="2938" data-height="1412" data-lark-image-uri="drivetoken://TemSbI5GwohRHCxVUFCumvr8swf" data-lark-image-width="2938" data-lark-image-height="1412" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgrVTOTw0s1oviowSCylHqd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus1wBrLRPwCnpLHWk3PhQvSg"><strong>2. How Oscillators Work</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusPAc2xIuYF1HYM5JMVzxY5g"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusCyi7zN1pW9Iqu0bU3dmHHg"><span style="font-size: 16px;">Oscillators apply mathematical formulas to price data to generate a series of values that fluctuate within a fixed or relatively fixed range. Structurally, they fall into two main categories:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusKW34d52O1MW8l6aij1Rgfh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusKZyllIMW9cscIGsF6yHLrf"><span style="font-size: 16px;"><strong>Centered oscillators:</strong> These fluctuate above and below a centerline. For example, the OSC fluctuates around 100, while the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-macd-indicator-in-trading-426304203100942336">Moving Average Convergence Divergence (MACD)</a> fluctuates around zero. These indicators help assess the direction and strength of momentum. Readings above the centerline indicate that bullish momentum is dominant, while readings below it indicate that bearish momentum is dominant.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusKuQVI39Yi0Dy6xtA5HU9ld"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJmjEOpTCDS19CfXLnXsV8e"><span style="font-size: 16px;"><strong>Banded oscillators:</strong> These fluctuate between defined upper and lower boundaries. For example, the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-relative-strength-index-rsi-in-trading-425570029981283328">Relative Strength Index (RSI)</a> ranges from 0 to 100, with 70 typically marking the overbought threshold and 30 marking the oversold threshold. These indicators help identify extreme price conditions.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusr1lciVON9Ee8hGnLAyB2Qe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusUkrxjHXPPEbBEtf4DMh8Je"><span style="font-size: 16px;">The OSC's overbought and oversold thresholds can vary depending on the characteristics of each stock. Use historical data to adjust the parameters rather than applying fixed values mechanically.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusf1sJJn7brTOXHBRpq6N64b"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusUPlU2dzK6hgO0FM7OsOMuc"><strong>3. Common Oscillators</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusNeIlCxfL49i2jvJOqtZDIh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIiOCZ4KnQyHQnAtFW50sPb"><span style="font-size: 16px;">In addition to the OSC, the following widely used oscillators are common in U.S. stock trading and are all supported by MEXC's charting tools:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxust5fmgLhfq7oTp5NaLjNAtd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusm4MFlzr7J1ABtIj11n99Gc"><span style="font-size: 16px;"><strong>Relative Strength Index (RSI):</strong> Compares average gains with average losses over a given period to assess the balance between buying and selling pressure. Readings above 70 indicate overbought conditions, while readings below 30 indicate oversold conditions. It is best suited to range-bound markets.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuslGmH7S1VvEfiVUWtOvuOvh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxussB0GtMHuj7ocBS4Lc0kHlc"><span style="font-size: 16px;"><strong>Moving Average Convergence Divergence (MACD):</strong> Based on the difference between a fast and a slow exponential moving average, the MACD combines trend-following and momentum analysis. It helps identify trend changes and potential entry and exit points.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHWRnX3K5vhRv3pTL2aHd6g"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXUAH9cjt4vgrxmP0YaGnHg"><span style="font-size: 16px;"><strong><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-stochastic-oscillator-in-trading-427169948248728576">Stochastic Oscillator (KDJ)</a></strong>: Generates signals by comparing the latest closing price with the highest and lowest prices over the past 14 trading days. Readings above 80 indicate overbought conditions, while readings below 20 indicate oversold conditions. It is particularly sensitive to short-term reversals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuse5TZwbSppQXL4jBDSeg93f"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusHuXDZ9G0uGAduENXODbVJb"><strong>4. How to Use the OSC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxuspyfZGuQ5DDQ723cxfWyTdd"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusSyHKz9Xv8F9Nys3PyAqgqe"><span style="font-size: 16px;">4.1 Use centerline crossovers to identify bullish and bearish momentum</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqKQqvUXqcqx3rla9bqLiab"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFgGGo444OMEEGOvYjCTSRb"><span style="font-size: 16px;">When the OSC crosses above the 100 centerline, it indicates a shift from bearish to bullish momentum and may be interpreted as a buy signal. When it crosses below the centerline, it indicates a shift from bullish to bearish momentum and may be interpreted as a sell signal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus0yy3zyrF1SFL6bU2rBJw0g"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXiZKqD8Km5eemg2jDF8isf"><span style="font-size: 16px;">A crossover above the OSC's own moving average may also present a potential buying opportunity, while a crossover below it may present a potential selling opportunity. Centerline crossovers are straightforward to interpret, but they can be affected by considerable market noise in sideways markets. Use other tools to confirm these signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus0vV9BC71BfROsEXsdye6Rb"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"0fb26527-c015-4996-9180-44a41a0591dc","height":1406,"width":2938,"currHeight":1406,"currWidth":2938,"natrualHeight":1406,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FPYQ6bumJLoBYp6xRZjaufqA5sP1%2F%3Fpreview_type%3D16","file_token":"PYQ6bumJLoBYp6xRZjaufqA5sP1","image_type":"image/png","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgHfDbdWD6PV67SJfm5rZS5f"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261112103417850Ubffa85Bjecpkc.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJQWVE2YnVtSkxvQllwNnhSWmphdWZxQTVzUDEiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdIZkRiZFdENlBWNjdTSmZtNXJaUzVmIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9QWVE2YnVtSkxvQllwNnhSWmphdWZxQTVzUDEvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/PYQ6bumJLoBYp6xRZjaufqA5sP1/?mount_node_token=doxlgHfDbdWD6PV67SJfm5rZS5f&mount_point=docx_image" data-width="2938" data-height="1406" data-lark-image-uri="drivetoken://PYQ6bumJLoBYp6xRZjaufqA5sP1" data-lark-image-width="2938" data-lark-image-height="1406" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGaxo4khSpbUc9XL45II7Qf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusmXfZ2F8vl2YziyCP3yJ4Zf"><span style="font-size: 16px;">4.2 Identify overbought and oversold zones</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusa38rW5uJGMZa9q79V7o73c"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusVeeoyikwsZWK0HxXzWrufg"><span style="font-size: 16px;">When the OSC reaches the upper end of its historical range, it suggests that short-term gains may be overextended and a pullback could follow. When it reaches the lower end of its historical range, it suggests that short-term losses may be excessive and a rebound could occur.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusx9hnA5PWCvYxgn1ZKLKNHd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxustImGOQpWV5tCQaOMxwQzwc"><span style="font-size: 16px;">For beginners, it is important to remember that overbought does not mean sell immediately, and oversold does not mean buy immediately. During a strong directional trend, the indicator can remain at extreme levels for an extended period. In these conditions, focus on trading with the trend: look for potential buying opportunities from oversold signals in an uptrend and potential selling opportunities from overbought signals in a downtrend.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusemnLjqVrRUptBeDSNo3cdb"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusBqJ7fn9tZZRiw7S1mPPu0b"><span style="font-size: 16px;">4.3 Use divergence to anticipate potential reversals</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus3nlU4oXK5SBPSg8lwi8zAe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus5YMMeQvAJIeZPE4Hk3Wqkd"><span style="font-size: 16px;">Bullish divergence occurs when the stock price makes a lower low while the OSC makes a higher low. This suggests that downward momentum is weakening and the trend may reverse from downward to upward.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus4R5zhYEXeMUrGtQZfkk1Ah"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuscNt2CztRaSTlcVPjdmZM2d"><span style="font-size: 16px;">Bearish divergence occurs when the stock price makes a higher high while the OSC makes a lower high. This suggests that upward momentum is weakening and the trend may reverse from upward to downward.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusUaYpOmHTbVYAZNe0V4HIGd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXk5ReFAAw9akOn5k2dqPrf"><span style="font-size: 16px;">When the OSC diverges from the stock price at high or low levels, stay alert to the possibility of a price reversal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusb15UNK9EuuhmoYdgaJJ1nc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusigmzwtnPjJhrbTuuhr1C6g"><strong>5. Combining Indicators for U.S. Stock Trading on MEXC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxuskmOueVNZsU8N1Ch1UOwDCb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusPlqCzzUWYOFYg3GUnrVEc0"><span style="font-size: 16px;">No single indicator is immune to misinterpretation. Beginners trading U.S. stocks on MEXC should use multiple tools to confirm signals:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbZEQDYFujka4YapikTmMpe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuse2IxBiq33cjwHHhlhvYb3d"><span style="font-size: 16px;">1) Use moving averages to confirm the broader trend, the OSC or RSI to identify potential entry and exit points, and <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-bollinger-bands-in-trading-416909030860353536">Bollinger Bands</a> to assess volatility.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvE2SiOvlyDfql6jA03RkJb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswL69Buux9QwAfhtKl6zXCg"><span style="font-size: 16px;">2) A buy signal has the strongest confirmation when an oversold reading, bullish divergence, and a moving average <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-golden-cross-and-death-cross-signals-in-trading-458446716142076928">golden cross</a> occur together.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusef1MG1XjqvI2UaSGxWQHDc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusNyqbjuhkgpcMoQQpufPmjf"><span style="font-size: 16px;">3) No indicator can guarantee 100% accuracy. Disciplined position sizing and stop-loss management remain essential to trading.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGCi5irNgyBgOOWCgLtcpjc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusogrWsD19NPab2NEjYaH0Ye"><strong>6. Oscillators vs. Moving Averages</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZKfPinWzIfPvrxOjbxYbCg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusG99c3LFV06j9uDzmZ90SYb"><span style="font-size: 16px;">Oscillators and <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-simple-moving-average-sma-in-trading-456004357219401728">moving averages</a> serve complementary purposes. Moving averages are lagging, trend-following indicators that help confirm the direction of a trend and support holding positions while that trend continues, but their signals often lag behind price movements. Oscillators are leading indicators that can provide early indications of potential entry and exit opportunities, although they are more susceptible to market noise in trending markets.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusR8WrDHRa0JQOKn4YSBRdih"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusglnfd3fRDMUmLnUYkWjFJf"><span style="font-size: 16px;">In short, oscillators are suited to range-bound markets, while moving averages are suited to directional markets. Combining the two can strengthen trading analysis. For example, when the OSC generates a buy signal while the stock price is above its 50-day moving average, the bullish signal has stronger confirmation.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusLRxnxUnbHZdB6aQCeD9zWr"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusxvKieAI2vr3bNJrnJWtI8b"><strong>7. Oscillator FAQs</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXgeqcI0RgNUlNSTf5N8o1e"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusXGoEtOeWIzZXk9TpgR1CFe"><span style="font-size: 16px;">7.1 What is an oscillator in trading?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusw9yPRexdnWMhPDWLoKFHzf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusCsvS4eGkX4sFUCD8rKFQ4e"><span style="font-size: 16px;">An oscillator is a technical analysis tool that measures the speed of changes in an asset's price. Its values fluctuate within a fixed range or around a centerline to help identify overbought and oversold conditions, momentum strength, and potential trend reversal points.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusPokFhXApcD5oENQDpylaKe"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuske07ATnOXACggFJAVWh8Lg"><span style="font-size: 16px;">7.2 How do you use oscillators in trading?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusv1BreDF9kOtuay7oVPH0kg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusKlSCa0yQd7hwTIpXFMbHSh"><span style="font-size: 16px;">There are three main approaches: use centerline crossovers to assess bullish or bearish momentum, identify overbought and oversold zones to look for potential reversals, and examine divergence between price and the indicator to anticipate possible trend changes. Use trend indicators alongside oscillators to confirm signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxushvTTKWRUDXg8oveO9wwCwc"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusPMmAGRTpWzAzpVnssIGpcN"><span style="font-size: 16px;">7.3 Which oscillator is best for trading?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMv1u4AnrhVmmDUCmhIYDdg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuseQm16rx7uutTsWhRwQtBZE"><span style="font-size: 16px;">No single indicator is best in every situation. The RSI is suited to identifying overbought and oversold conditions, the MACD to spotting trend changes, and the stochastic oscillator to short-term trading. Beginners should focus on mastering two or three complementary indicators rather than trying to use too many.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuslPIe0rjZPuhvILJr5Bkshb"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusRd4GH9QAFzm1RLJmCfoWkc"><span style="font-size: 16px;">7.4 What are oscillators mainly used for?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxuskv9VM8nfx7QsFshWDY7A8c"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusboAb78HiBj0Ch5g6GvQOxh"><span style="font-size: 16px;">Oscillators help identify overbought and oversold conditions, assess the direction and strength of momentum, flag potential trend reversals through divergence, and confirm signals from other technical analysis tools.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjGKrTf5Fk5fn9ssOZKWHId"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusilKvLYWu9E3UzIR8wDFVOf"><span style="font-size: 16px;">7.5 What is the 3-5-7 rule in trading?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfvTPx610RqATOt1I86M5Db"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusM8jRfkMzinnhvLhhdjCgHq"><span style="font-size: 16px;">The 3-5-7 rule is a risk management principle that limits risk on a single trade to 3% of account funds, total risk exposure in a single market to 5%, and overall account risk to 7%. Used alongside oscillators, it can help manage trading risk.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusS8ilaC7nKngJbgJFzNiJeh"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusBx2U63jjDAp9LKtvECYfYf"><span style="font-size: 16px;">7.6 Can I use the OSC to analyze U.S. stocks on MEXC?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus5eh518zEfcYToC96d273ig"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiPrKzJJEZD4FBFsteNxeJf"><span style="font-size: 16px;">Yes. MEXC supports the OSC and a range of other popular technical indicators for <a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">U.S. stock trading</a>. You can add them through the charting tools and customize their parameters to suit individual stocks.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusopdNoQdkEJ22He1VqQ1gve"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusRYW8tHjdRT5fckmHTBDnze"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusxxv78m6Ej3rXa7DlViyf1e" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-srdm-indicator-in-u-s-stock-trading-504270091590480896" style="font-size: 16px;">How to Use the SRDM Indicator in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusTPudkllumyxHxaBuUIrQqe" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-volume-relative-strength-index-vrsi-in-u-s-stock-trading-500535643296412672" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Volume Relative Strength Index (VRSI) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuspegnVOmbcQMRXpQMs0aySd" data-list="bullet"><div><a href="https://www.mexc.com/support/article/what-is-a-shooting-star-candlestick-a-beginner-s-guide-to-identifying-and-trading-the-pattern-504349101808858112" data-lark-is-custom="true" style="font-size: 16px;">What Is a Shooting Star Candlestick? A Beginner's Guide to Identifying and Trading the Pattern</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuspSUnC8SWZbjh4BvwK33s2g" data-list="bullet"><div><a href="https://www.mexc.com/support/article/what-is-a-hanging-man-candlestick-pattern-a-beginner-s-guide-to-identification-and-trading-499820299313384448" data-lark-is-custom="true" style="font-size: 16px;">What Is a Hanging Man Candlestick Pattern? A Beginner's Guide to Identification and Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusTOxKFF15p2FQMAvBnuhJdg" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-tradingview-on-mexc-466637656862259200" data-lark-is-custom="true" style="font-size: 16px;">How to Use TradingView on MEXC</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusx18YfW9Y8sbBP6F7m0ISTb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-support-and-resistance-levels-in-trading-462151469032291328" data-lark-is-custom="true" style="font-size: 16px;">How to Use Support and Resistance Levels in Trading</a></div></li></ul>

<div data-page-id="IuxbdE2ZNoSgelxpk2eu7xuOsob" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxusE6R32QvpZ6KOjA5UDAVi1g"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxus7Ai84NLOHHE3CWvlfNvPyh" data-list="bullet"><div><span style="font-size: 16px;">SRDM is a price-based trend indicator that compares upward and downward momentum.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusrmmcWjUGz78s476ZAFg2fg" data-list="bullet"><div><span style="font-size: 16px;">SRDM uses changes in highs and lows to calculate upward and downward movement, then compares their moving averages to derive a ratio.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus56qqx3lWKtaivsRwXpgUEb" data-list="bullet"><div><span style="font-size: 16px;">Positive and negative SRDM readings can help traders assess the relative strength of upward and downward momentum.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusxQtecB9R0JRd3eE69INK8g" data-list="bullet"><div><span style="font-size: 16px;">Crossovers between the SRDM line and its smoothed line, ASRDM, may provide reference signals for buying or reducing a position.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusScRfBz0Y8wGZKJu7k3ALsf" data-list="bullet"><div><span style="font-size: 16px;">MEXC supports SRDM for U.S. stock market analysis, helping users make informed trading decisions.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxuszMPTZH9xkcWrc3bJNZFeEf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusE3T0xPylgs1Y5esdAJcHTf"><strong>1. What Is the SRDM Indicator?</strong></h2><div class="ace-line ace-line old-record-id-doxusmNxps5VivaH2d1XyDqZGJc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusuLIAhEsclAd5g9IUFVvDZv"><span style="font-size: 16px;">SRDM is a technical analysis indicator based on price movements. It uses historical highs and lows to compare upward and downward momentum over a given period, helping traders assess the direction and strength of a price trend.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqtGdZS1b8NGhwvEUQCxfYe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusBMKeJ4hPBg8hNI74Ru8X7d"><span style="font-size: 16px;">For beginners in U.S. stock trading, SRDM turns complex price movements into an easy-to-read value. By observing whether the reading is positive or negative and how it changes, users can form a basic view of the market trend. When trading U.S. stocks on <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>, users can use SRDM to support their analysis of an asset's price movements.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuseR2bwg6qVAgJTTdDJ8vZjc"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"fb329e14-66c6-434a-b927-656841e4f910","height":1408,"width":2938,"currHeight":1408,"currWidth":2938,"natrualHeight":1408,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FJy8eb3zwwoYImWxFB2zuCAqjsTb%2F%3Fpreview_type%3D16","file_token":"Jy8eb3zwwoYImWxFB2zuCAqjsTb","image_type":"image/png","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlglrgM5SslusFkMiWsZAFbhh"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261111105220435VCeDThpD0sWR9n.png" data-single-block="true" data-snapshot="eyJ0eXBlIjoiaW1hZ2UiLCJwYXJlbnRfaWQiOiJJdXhiZEUyWk5vU2dlbHhwazJldTd4dU9zb2IiLCJjb21tZW50cyI6W10sInJldmlzaW9ucyI6W10sImxvY2tlZCI6ZmFsc2UsImhpZGRlbiI6ZmFsc2UsImF1dGhvciI6Ijc2MDMyMTcwNjc1MzMxNDM0NzYiLCJhaV9leHRyYSI6eyJnZW5fc291cmNlcyI6WzFdfSwiYWxpZ24iOiIiLCJpbWFnZSI6eyJ0b2tlbiI6Ikp5OGViM3p3d29ZSW1XeEZCMnp1Q0FxanNUYiIsIm1pbWVUeXBlIjoiaW1hZ2UvcG5nIiwic2l6ZSI6MSwic2NhbGUiOjEsIndpZHRoIjoyOTM4LCJoZWlnaHQiOjE0MDgsIm5hbWUiOiJpbWFnZS5wbmciLCJjcm9wIjpbMCwwLDAsMF0sInJvdGF0aW9uIjowLCJjYXB0aW9uIjp7InRleHQiOnsiYXBvb2wiOnsibmV4dE51bSI6MCwibnVtVG9BdHRyaWIiOm51bGx9LCJpbml0aWFsQXR0cmlidXRlZFRleHRzIjp7ImF0dHJpYnMiOm51bGwsInRleHQiOm51bGx9fX19LCJhcmVhX2NvbW1lbnRzIjpudWxsfQ==" data-suite="eyJmaWxlVG9rZW4iOiJKeThlYjN6d3dvWUltV3hGQjJ6dUNBcWpzVGIiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdscmdNNVNzbHVzRmtNaVdzWkFGYmhoIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9KeThlYjN6d3dvWUltV3hGQjJ6dUNBcWpzVGIvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Jy8eb3zwwoYImWxFB2zuCAqjsTb/?mount_node_token=doxlglrgM5SslusFkMiWsZAFbhh&mount_point=docx_image" data-width="2938" data-height="1408" data-lark-image-uri="drivetoken://Jy8eb3zwwoYImWxFB2zuCAqjsTb" data-lark-image-width="2938" data-lark-image-height="1408" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusG5UaKvieHRUHthdVOoCLWb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusxE6FtWXzUAraePFOKw2h4e"><strong>2. How to Calculate the SRDM Indicator</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusq7sExjmob5XeLQ1DqfANRh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusd6VwaQ5whNDbprmizT8Zgh"><span style="font-size: 16px;">The SRDM calculation has four steps:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusBN1tAfL7Y0VhSi6Po5jrhd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJvEWLFiaA5I2BwaxHQEEub"><span style="font-size: 16px;">1) Calculate upward movement. If the sum of the current period's high and low is less than or equal to the previous period's sum, upward movement is zero. Otherwise, use the larger of the absolute change in the high and the absolute change in the low.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusenf4L06PbXtxBv8COpTXPd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZqMOSu3etu5ANF9UhcPONF"><span style="font-size: 16px;">2) Calculate downward movement. If the sum of the current period's high and low is greater than or equal to the previous period's sum, downward movement is zero. Otherwise, use the larger of the two absolute changes.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusEvzhwdp9LxFNbcA9eS1bie"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus3aCV7Vt7lIQdtk0v4KW03g"><span style="font-size: 16px;">3) Calculate a 10-day moving average of upward movement and a separate 10-day moving average of downward movement.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusmCsMbai5Afeuufq1C4aALb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqeiX901zcig76qeP0oxX9b"><span style="font-size: 16px;">4) Compare the two averages. If average upward movement is greater, SRDM = (Average upward movement − Average downward movement) / Average upward movement. If average downward movement is greater, SRDM = (Average upward movement − Average downward movement) / Average downward movement. If the averages are equal, SRDM = 0. Finally, calculate a moving average of SRDM over a specified period, such as 30-day, to obtain ASRDM, the signal line</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusAVNOzqLcHPeBvBUgt2fVug"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus6J0VHcrGEshbPK1Q7T2Ucc"><strong>3. How to Interpret SRDM in U.S. Stock Trading</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus4C5TxaXCwaPWWNki9nqovd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusD17VQffBtEsxAhxl65f5bg"><span style="font-size: 16px;">There are three main aspects to consider when interpreting SRDM:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8XtgcWaOspniRcIaJdpHgf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfyAkschU3HTZ0YxZ01kxAb"><span style="font-size: 16px;">1) Check whether the reading is positive or negative. A positive value may indicate that upward momentum is stronger, suggesting a bullish bias. A negative value may indicate that downward momentum is stronger, suggesting a bearish bias.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvDZ9jTHfphdtZVQNvDf45X"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQljBAzeWj6RmxEUZt2lozf"><span style="font-size: 16px;">2) Assess the smoothed line. A higher positive ASRDM reading may suggest a stronger upward trend, while a more negative reading may suggest a stronger downward trend.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusM8snSulDpNh0IT0oB1GpJg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus5Bk8RGsxlE3qhK2jRY95Ad"><span style="font-size: 16px;">3) Watch for crossovers and changes in direction. When SRDM crosses above ASRDM, it may indicate a potential buying opportunity. Conversely, a crossover below ASRDM may suggest weakening momentum and a potential opportunity to reduce or exit a position.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusL5L8HgejDIRmH76gOF9Kab"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswzlqXmKeO4tia88504IIec"><span style="font-size: 16px;">Beginners should remember that any individual technical indicator can lag price movements and be affected by market noise, leading to inaccurate interpretations. When <a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">trading U.S. stocks</a> on MEXC, combine SRDM with other tools, such as <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-moving-average-of-volume-in-trading-421863713722995712">volume</a> and <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-moving-average-indicators-in-trading-416905955663768576">moving averages</a>, and apply appropriate position sizing and risk management.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus7c3nQGTH8drob19bd3PHWb"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusoaMQG8jeldNbSVqhd3SStg"><span style="font-size: 16px;">*BTN-<strong>Trade U.S. Stocks</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">https://www.mexc.com/trade-stocks</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusC7fqzoldBHlbZB1ze4rw9b"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"e3df3d0d-cecc-47c6-82f2-ee899b1ded9b","height":1416,"width":2938,"currHeight":1416,"currWidth":2938,"natrualHeight":1416,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FIr6NbFj0loKaCqxmUvouGNsFsLb%2F%3Fpreview_type%3D16","file_token":"Ir6NbFj0loKaCqxmUvouGNsFsLb","image_type":"image/png","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgbZvgC4uNrw48TXynK3lcWc"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261111105225995KPRdJwWql6oYAA.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJJcjZOYkZqMGxvS2FDcXhtVXZvdUdOc0ZzTGIiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdiWnZnQzR1TnJ3NDhUWHluSzNsY1djIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9JcjZOYkZqMGxvS2FDcXhtVXZvdUdOc0ZzTGIvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Ir6NbFj0loKaCqxmUvouGNsFsLb/?mount_node_token=doxlgbZvgC4uNrw48TXynK3lcWc&mount_point=docx_image" data-width="2938" data-height="1416" data-lark-image-uri="drivetoken://Ir6NbFj0loKaCqxmUvouGNsFsLb" data-lark-image-width="2938" data-lark-image-height="1416" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusq7IFaNtHT7OgXEz2znc6R9"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxuscXubzMI2gYigaOQ2lK34gh"><strong>4. SRDM FAQs</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus9kkezbdmOol6tNQS09kWIc"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus7gixRE9LS355RHEqZ4uwoe"><span style="font-size: 16px;">4.1 What does SRDM mean in trading?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiFRKzw0icPYaUMxHuXwVlf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus35zvigyS8PtcmxPRwpqi9b"><span style="font-size: 16px;">In trading, SRDM refers to a price-based technical indicator that compares the strength of upward and downward momentum.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusSnrsovGuGkUbd7GfKL1FMn"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusgIGu7I67NY2poXJwbo5a9g"><span style="font-size: 16px;">4.2 How does SRDM indicate potential buying and selling opportunities?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusSJV9gtLDSJ88XZiGGwvLZf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusDdj4bYNDXt9aHnFgvP4PXf"><span style="font-size: 16px;">When SRDM crosses above ASRDM, it may signal strengthening upward momentum. When SRDM crosses below ASRDM, it may signal weakening momentum or increasing downward pressure.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6MBbvB7x7jCAxq4QR0ZBPL"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusUrg4GoyEDOmym8SDs894dg"><span style="font-size: 16px;">4.3 What settings are commonly used for SRDM?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus7Rj3xqghEtBazSg0RqEnpg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus43xID38MQu13lL8rq7G9of"><span style="font-size: 16px;">The upward and downward movement averages commonly use 10 periods, while ASRDM commonly uses 30 periods.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusxMyTWjKXKDvADaH0xJqbtc"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusX7ZHQB0KiPE429EGpMtKwb"><span style="font-size: 16px;">4.4 How does SRDM differ from other directional indicators?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxuscSE3AKfG83zqsTmbpOZpEc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiavJaAb1p1Fagdn1lJlVKT"><span style="font-size: 16px;">SRDM uses a ratio to quantify the relative strength of upward and downward momentum, in addition to helping identify trend direction. Other directional indicators may place different emphasis on direction and strength.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusuY8bW0Flu0PT60gObGpWsg"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusJxJuIVboEQQnNS2hqNlsYe"><span style="font-size: 16px;">4.5 Can I use SRDM for U.S. stock trading on MEXC?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusAfnjdcpmq5aMjRNdxdXQ0e"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHY88GhD4LGMc9zeo0rwbXf"><span style="font-size: 16px;">Yes. MEXC supports SRDM for U.S. stock market analysis. Users can apply it to assess trends and inform trading decisions.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusxlTwGJJ7BipJ5uLLiPilje"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus0PncUzsy8IwtcauqfwZjlh"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusrn4o9P2VlMKHftPYWxYIBb" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-volume-relative-strength-index-vrsi-in-u-s-stock-trading-500535643296412672" style="font-size: 16px;">How to Use the Volume Relative Strength Index (VRSI) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusGN4i8zflBXO0keCKRQDfTh" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-volume-rate-of-change-vroc-in-u-s-stock-trading-499813728013424640" data-lark-is-custom="true" style="font-size: 16px;">How to Use Volume Rate of Change (VROC) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuskg9gm89Q5elJ6OWLF4Td7x" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-slow-stochastic-oscillator-slowkd-in-u-s-stock-trading-499226348286023680" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Slow Stochastic Oscillator (SLOWKD) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusTu3hI59FTkX92u63Y38IFe" data-list="bullet"><div><a href="https://www.mexc.com/support/article/what-is-a-hanging-man-candlestick-pattern-a-beginner-s-guide-to-identification-and-trading-499820299313384448" data-lark-is-custom="true" style="font-size: 16px;">What Is a Hanging Man Candlestick Pattern? A Beginner's Guide to Identification and Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuskYUBFWJNvajJtqbLMfqLwc" data-list="bullet"><div><a href="https://www.mexc.com/support/article/what-is-a-hammer-candlestick-a-beginner-s-guide-to-identifying-and-trading-the-pattern-498483190094776320" data-lark-is-custom="true" style="font-size: 16px;">What Is a Hammer Candlestick? A Beginner's Guide to Identifying and Trading the Pattern</a></div></li></ul><div class="ace-line ace-line old-record-id-Ew7xdbzUOo3KnHxDQNTu7XvFsHe"><span style="font-size: 16px;"><br></span></div></div>

<div data-page-id="ZuQid7a2Io01USx5OFBuS2bmsSb" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxuskvUbIRz34nC397xqTNr6Ne"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-doxusdYvmYhHHOljUU9Ve7iCfCb" data-list="bullet"><div><span style="font-size: 16px;">The Volume Relative Strength Index combines trading volume and price changes to measure buying and selling pressure, as well as market supply and demand.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxussr7ZT43iuJNznc061junjg" data-list="bullet"><div><span style="font-size: 16px;">VRSI uses 50 as the dividing line between market strength and weakness. Readings above 50 indicate a strong market, while readings below 50 indicate a weak market.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus2G2MifTc89IRhf5vVtKdcf" data-list="bullet"><div><span style="font-size: 16px;">Changes in histogram height and color provide a visual indication of strengthening or weakening trend pressure.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusWZuzUJKjBh8KkwQfpf628d" data-list="bullet"><div><span style="font-size: 16px;">VRSI can be applied to stocks, exchange-traded funds (ETFs), futures, forex, and cryptocurrencies.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuskWopjhFzS7AuB9i2aMVwte" data-list="bullet"><div><span style="font-size: 16px;">Use VRSI alongside other price-based indicators and cross-check signals across multiple timeframes.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8kJhgnYyz1BqAL1DvKkHQd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxuspZMgwdvFUDbuGMMYAgTKRh"><strong>1. What Is the Volume Relative Strength Index?</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMzuYPPYePLi0CEU7v8Mmuf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusazTh65XBn88cA3iS0LBXGe"><span style="font-size: 16px;">The Volume Relative Strength Index (VRSI) is a volume-based technical indicator developed from the traditional <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-relative-strength-index-rsi-in-trading-425570029981283328">Relative Strength Index (RSI)</a>. While traditional RSI is calculated solely from the magnitude of price gains and losses, VRSI incorporates trading volume into its core calculation. It uses four factors, namely the number of up days, the number of down days, the magnitude of volume increases, and the magnitude of volume decreases, to assess volume trends and anticipate supply and demand dynamics as well as buying and selling pressure.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusikqedVPVeQLkS7KCAJxo8g"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus1BnpcSznBbRB0eiPcWX5sb"><strong>2. How to Interpret the Volume Relative Strength Index</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6cpOpoxMLrrQT7POVx6Mbg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusspa60toPVo7XCi8pG7cB6g"><span style="font-size: 16px;">VRSI uses 50 as the dividing line between bullish and bearish conditions. Readings above 50 indicate a strong market, while readings below 50 indicate a weak market. Signals tend to be more accurate when the indicator is above 50. A crossover above this level often suggests that market sentiment is shifting from bearish to bullish, while a crossover below it suggests the opposite.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusEW96BQBJcygOVQUiJVWKLf"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusm6112rUmxNTdRNvipgez2e"><span style="font-size: 16px;">*BTN-<strong>Trade U.S. Stocks</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">https://www.mexc.com/trade-stocks</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusO2ivz8vKWTp2WtVwgbdUPd"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"20b6e975-f5eb-4d29-ab82-f5dd01b078d3","height":1408,"width":2938,"currHeight":1408,"currWidth":2938,"natrualHeight":1408,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FOHQQbfdDZo7KRxxfAAXuLoZ3sOb%2F%3Fpreview_type%3D16","file_token":"OHQQbfdDZo7KRxxfAAXuLoZ3sOb","image_type":"image/png","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlg8Ll0ZWVKwHRWE5xwxFiehh"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261106100635393NHrm5sSIBr7cfA.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJPSFFRYmZkRFpvN0tSeHhmQUFYdUxvWjNzT2IiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGc4TGwwWldWS3dIUldFNXh3eEZpZWhoIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9PSFFRYmZkRFpvN0tSeHhmQUFYdUxvWjNzT2IvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/OHQQbfdDZo7KRxxfAAXuLoZ3sOb/?mount_node_token=doxlg8Ll0ZWVKwHRWE5xwxFiehh&mount_point=docx_image" data-width="2938" data-height="1408" data-lark-image-uri="drivetoken://OHQQbfdDZo7KRxxfAAXuLoZ3sOb" data-lark-image-width="2938" data-lark-image-height="1408" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusoZvfwlHgdyQ4wMoZ6JGSog"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxush8vzUmXLtFuOfFOwUTVeKe"><strong>3. How to Use VRSI Buy and Sell Signals</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus18HiAI1mX94RNDVDOqKmQf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFpNEGsVzBvvO47dHe8Iglh"><span style="font-size: 16px;">1) Classic overbought and oversold signals: A downward turn above 60 is a sell signal, while an upward turn below 40 is a buy signal. Note that sell signals are generally more reliable than buy signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus3lpCRribvwsfHNahBTXAzc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQGfndCxBHgodUuZ7cdeIDc"><span style="font-size: 16px;">2) Comparing lows during consolidation: When the market is trading sideways, successively higher indicator lows suggest that buyers have the upper hand and prices may continue to rise. Successively lower lows, on the other hand, are a sell signal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdHdj5g2kYQRLquWNFms88e"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusv4CEFUU5HycUBva8MxQxSf"><strong>4. Key Considerations When Using VRSI</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMKqazW8F04tsbo13ymRiUq"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqqTwY9O8Y8I5KRca94naDh"><span style="font-size: 16px;">VRSI is a volume-based oscillator and should not be used as the sole basis for trading decisions. In practice, combine it with price-based indicators such as the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-stochastic-oscillator-in-trading-427169948248728576">Stochastic Oscillator</a> and <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-macd-indicator-in-trading-426304203100942336">Moving Average Convergence Divergence (MACD)</a> to assess price direction in the broader market context. It is also advisable to monitor the indicator across multiple timeframes, using longer timeframes to confirm direction and shorter timeframes to identify entry opportunities.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusyLXEfNMJFV7rnPAS7j9NMh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfIFutKGFFe3UrBg8cwNPvh"><span style="font-size: 16px;">When trading on MEXC, you can use candlestick chart tools to combine volume analysis with price analysis. Set stop-loss orders consistently to manage risk on each trade.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusg0y1bl8bNdFlVyKMUvcpUh"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"21f99550-a3c1-4c1c-98de-4a1909a38720","height":1414,"width":2938,"currHeight":1414,"currWidth":2938,"natrualHeight":1414,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FKFXHbfkMhobSiKxfJv7uI6m2shc%2F%3Fpreview_type%3D16","file_token":"KFXHbfkMhobSiKxfJv7uI6m2shc","image_type":"image/png","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgLVKlPIO2x6t5VEdC0X1Qme"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261106100635419liLtAqS7qXUN1B.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJLRlhIYmZrTWhvYlNpS3hmSnY3dUk2bTJzaGMiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdMVktsUElPMng2dDVWRWRDMFgxUW1lIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9LRlhIYmZrTWhvYlNpS3hmSnY3dUk2bTJzaGMvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/KFXHbfkMhobSiKxfJv7uI6m2shc/?mount_node_token=doxlgLVKlPIO2x6t5VEdC0X1Qme&mount_point=docx_image" data-width="2938" data-height="1414" data-lark-image-uri="drivetoken://KFXHbfkMhobSiKxfJv7uI6m2shc" data-lark-image-width="2938" data-lark-image-height="1414" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusnua8EgDHKdPPukE28bMTjg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusR1n745mYvUZnSpxEJ5Dplh"><strong>5. Volume Relative Strength Index FAQ</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus66UIN30ezISZf2lNbteCEe"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus2V2S0GIT0Anu850vMhjF2h"><span style="font-size: 16px;">5.1 What VRSI level indicates a buying opportunity?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusxFNrLlAI01pk5gAlOUC7Gf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHR6FpIsuZUSYNE5pHKJ3Hc"><span style="font-size: 16px;">Generally, an upward turn in VRSI below 40 is a buy signal, while a downward turn above 60 is a sell signal. However, these level-based signals should be assessed in the context of the overall trend rather than applied mechanically.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusn7NOHNHxFs1imy5AAmTHwb"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusXtUBcwofUbg2avdcuKZgIb"><span style="font-size: 16px;">5.2 How does VRSI differ from traditional RSI?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjxMCJttJucRmj2ureH2Mxg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusub1hpIlx4CY7NOP6mkzkfb"><span style="font-size: 16px;">Traditional RSI is calculated solely from price gains and losses. VRSI incorporates trading volume, weighting the strength of gains and losses by volume to better reflect actual capital participation.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusLOXOakn1tyXiCpa01ZhiSd"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusO2ZnxuobB96MgNb7FJVChU"><span style="font-size: 16px;">5.3 Is there a better indicator than RSI?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGVGUd5KTeV6YasCLo3hClc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFIYChR2DfSmtEeOVjhaXuh"><span style="font-size: 16px;">No indicator is universally better than another, as each tool has a different focus. VRSI adds the volume dimension that traditional RSI lacks, but the best approach is to combine multiple indicators and validate signals across multiple timeframes.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQsd4InfATnEywGnVA9p4id"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuspMB1HohHA9G5myjoDcL26d"><span style="font-size: 16px;">5.4 What is the default VRSI setting?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxussjS4eRZvWrIdMvIEssOd8a"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusTEbFjlcC4MJvOMOkk0QVTh"><span style="font-size: 16px;">A common default lookback period is 14. Short-term traders can shorten the period to increase sensitivity, while long-term investors can extend it to filter out market noise.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJlCr53KhSByu0ohDWapP3b"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus4E8z0u7o1bmVUPpUAbxxxo"><span style="font-size: 16px;">5.5 Which markets can VRSI be used in?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusH3pHf6BTN4ioU0Q86HUFD2"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusD9V74zIwSS7UjzHiv5DqKl"><span style="font-size: 16px;">VRSI can be used in a range of markets, including stocks, ETFs, futures, forex, and cryptocurrencies. When trading digital assets on <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>, you can also apply the indicator's analytical approach to assess the relationship between volume and price.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus3xqa7wrffD8Ix1zsGKMehd"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus6XP8Wh0ZQMjMMuERQsjtQd"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusGyCmSnAfFMUhJ9HdlbG1Wg" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-volume-rate-of-change-vroc-in-u-s-stock-trading-499813728013424640" style="font-size: 16px;">How to Use the Volume Rate of Change (VROC) Indicator in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxush1AP92yCrNGQnDuvNTaatf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-slow-stochastic-oscillator-slowkd-in-u-s-stock-trading-499226348286023680" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Slow Stochastic Oscillator (SLOWKD) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusx9j3gxqN7betbL8gC9EyLc" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-tradingview-on-mexc-466637656862259200" data-lark-is-custom="true" style="font-size: 16px;">How to Use TradingView on MEXC</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusFcFEtWTretpaQAco4WZrsf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-cr-energy-index-in-trading-441192234786152448" data-lark-is-custom="true" style="font-size: 16px;">How to Use the CR Energy Index in Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusTBqtkj29rOdIPNvzgzqYWg" data-list="bullet"><div><a href="https://www.mexc.com/support/article/what-is-a-doji-candlestick-a-beginner-s-guide-to-identifying-and-trading-doji-patterns-495368797639296000" data-lark-is-custom="true" style="font-size: 16px;">What Is a Doji Candlestick?</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusRWwUDGPFDFVGy4Df9qSBPf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/what-is-a-hammer-candlestick-a-beginner-s-guide-to-identifying-and-trading-the-pattern-498483190094776320" data-lark-is-custom="true" style="font-size: 16px;">What Is a Hammer Candlestick?</a></div></li></ul></div>

<div data-page-id="SuvId17wVoSHqNxqH2dubPUlsDf" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxusOHpRpZ7f0tugeFrbc2PRD2"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusd9y20yDrz3pzSFcTWOtpic" data-list="bullet"><div><span style="font-size: 16px;">Volume Rate of Change (VROC) measures the percentage change in trading volume over a specified lookback period, helping traders assess changes in market participation.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusEOCXx6Bh190fMmgvJV0K9d" data-list="bullet"><div><span style="font-size: 16px;">VROC fluctuates around zero. Positive values indicate higher volume than the comparison period, while negative values indicate lower volume. Neither reading indicates price direction on its own.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusndmZgAm9HyEFh8rqSdBJbh" data-list="bullet"><div><span style="font-size: 16px;">In U.S. stock trading, VROC can help assess volume support for breakouts and highlight changes in participation that may warrant closer attention to potential reversals.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusYs3LHHam3t6FZrDrgm2myX" data-list="bullet"><div><span style="font-size: 16px;">VROC depends on accurate volume data and can be affected by market noise in sideways markets. Interpret it alongside price structure and other indicators rather than using it alone.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusv9OOGzlXvXVZ7KAAmdeAZc" data-list="bullet"><div><span style="font-size: 16px;">Common lookback settings include 12 or 25 periods. VROC and the cumulative On-Balance Volume indicator offer different perspectives and can be used together for a broader view of trading volume.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQCvwflntrcZokr1wSJaePp"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusZqpGcKIV5fuWOUeeBe1Lqd"><strong>1. What Is Volume Rate of Change?</strong></h2><div class="ace-line ace-line old-record-id-doxus6n0R7sH5AtZdwDjW94HU2e"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswnal6oMh0NQWy8bn5KSSee"><span style="font-size: 16px;">Volume Rate of Change (VROC) is a technical analysis tool that measures the percentage change in trading volume over a specified lookback period.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusK0xy2Tx9uZnct5u4D0Cswe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus0bTLdcEBp0vYshtJy8Go5g"><span style="font-size: 16px;">VROC works similarly to the price Rate of Change indicator, but analyzes volume rather than price. Significant chart formations, such as tops, bottoms, and breakouts, often coincide with increased trading volume. VROC can help traders identify these changes in activity as they develop.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusI3tFx175XmyYewSEZYhV2b"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXtpJVe755edmXj3WqdQcef"><span style="font-size: 16px;">For beginner U.S. Stock traders, VROC's key value is its view of market participation. A positive reading means current volume exceeds volume in the comparison period, while a negative reading means it is lower. Greater activity may support a price move in either direction; reduced activity may suggest weaker participation, but does not by itself confirm that a trend is ending.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusuxkRg1R9etu476mWMH7TXf"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"bb3465a8-0947-46e7-9180-4c64df22cd59","height":1418,"width":2938,"currHeight":1418,"currWidth":2938,"natrualHeight":1418,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FLm0VbcwAcovcTYx5zNTue5XqsEf%2F%3Fpreview_type%3D16","file_token":"Lm0VbcwAcovcTYx5zNTue5XqsEf","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgWrL6jbMIRMMEzzuPbE94Zg"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261105104518996VyIZTBmljLngjT.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJMbTBWYmN3QWNvdmNUWXg1ek5UdWU1WHFzRWYiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdXckw2amJNSVJNTUV6enVQYkU5NFpnIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9MbTBWYmN3QWNvdmNUWXg1ek5UdWU1WHFzRWYvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Lm0VbcwAcovcTYx5zNTue5XqsEf/?mount_node_token=doxlgWrL6jbMIRMMEzzuPbE94Zg&mount_point=docx_image" data-width="2938" data-height="1418" data-lark-image-uri="drivetoken://Lm0VbcwAcovcTYx5zNTue5XqsEf" data-lark-image-width="2938" data-lark-image-height="1418" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHvohIuPlyG9zSKwK37TtKh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusF4go0UhdYlYkc9g2P018Jb"><strong>2. How to Interpret VROC: Confirmation and Divergence</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswaWd0LCVms3Q0z4OwzTaie"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvCYAUoUv33KGzZqNwe8LMd"><span style="font-size: 16px;">VROC fluctuates above and below the zero line. A positive reading shows that current volume is higher than volume a specified number of periods ago. A negative reading shows that it is lower. A rising or falling VROC reflects a change in this comparison, not necessarily a rise or fall in price. Positive VROC can accompany either buying-driven rallies or selling-driven declines.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusWucvJpF4s7lyR9MfxjsujC"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgiqG2vLzXeC2lMSCwEg5Td"><span style="font-size: 16px;">1) Confirmation: When a price move is accompanied by increased volume relative to the lookback period, VROC can provide supporting evidence of greater participation. This applies to both upward and downward moves. Confirmation does not require price and VROC to move in the same direction.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus57LSWxrS4MrXKmtLOIca9e"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYeNUyofWQjiRJKtnVqqD8e"><span style="font-size: 16px;">2) Divergence: When price reaches a new high but VROC forms a lower high, it may indicate weakening volume momentum behind the price increase. Conversely, when price reaches a new low but VROC forms a higher low, it may suggest a change in volume momentum. However, neither pattern predicts a price reversal, as VROC measures changes in trading volume rather than buying or selling pressure.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6tuIFX7LaF5ZzFX8lxh5Pe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxust2ZC07Md10HY4J5MQORUTb"><span style="font-size: 16px;">Importantly, VROC does not indicate price direction or directly measure price volatility. It measures changes in trading volume and must be interpreted alongside price action.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdQlt87wcQEdgSy7IZ6szHf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus5lFWxJoGl3xEJz3WgPShKf"><strong>3. How to Use VROC in U.S. Stock Trading</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusNVDSRCdD92bJND25DNP8te"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusl6BRLOoxQ16kpOa8wmTLZC"><span style="font-size: 16px;"><strong>1) Breakout trading.</strong> When a stock breaks above resistance and VROC rises sharply into positive territory, the increase in volume may support the breakout and help traders assess a potential long entry. If price reaches a new high without a corresponding increase in volume, the breakout has less volume confirmation and warrants caution. Similarly, a break below support accompanied by a sharp positive VROC reading may support a bearish breakout. Volume confirmation does not guarantee that either breakout will continue.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXMw7nsvRDzQgMMTUOsgE0g"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusrpQDsP6OL5Xkv8IMpwQ3zh"><span style="font-size: 16px;"><strong>2) Reversal trading.</strong> Traders can compare price action with VROC to assess changes in participation around potential turning points. After a strong advance, a move from positive to negative VROC means volume has fallen below the lookback-period level; it does not predict a pullback. After a sustained decline, a recovery in VROC likewise does not establish a bullish reversal. In either case, a reversal setup needs confirmation from price structure before it can be perceived as a potential entry opportunity.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjQsQEJm9DK3ZULiRMDrnth"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusq8SUfn71yphbIHy4YeCxec"><span style="font-size: 16px;">Whichever approach you use, set stop-losses, manage position size, and test your rules in a simulated environment before applying them to live trades. <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>'s U.S. stock trading interface provides charting and risk management tools that can help beginners gradually develop their trading approach.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQZkEHj5FGUqgK5nFOmuMGf"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusX6HHkYNiCqgBJ89ic143qg"><span style="font-size: 16px;">*BTN-<strong>Trade U.S. Stocks</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">https://www.mexc.com/trade-stocks</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusTJPUasBavTLo6Usf2levcb"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"6fe1d71d-e3e9-4344-bc69-225edae9cfc3","height":1410,"width":2938,"currHeight":1410,"currWidth":2938,"natrualHeight":1410,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FDDGibN3kAo1ZigxD3zUuneOwsIb%2F%3Fpreview_type%3D16","file_token":"DDGibN3kAo1ZigxD3zUuneOwsIb","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgShPvGcC3Ym347DPfr0Tesg"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261105104518710ntSD9OiXiWk7kd.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJEREdpYk4za0FvMVppZ3hEM3pVdW5lT3dzSWIiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdTaFB2R2NDM1ltMzQ3RFBmcjBUZXNnIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9EREdpYk4za0FvMVppZ3hEM3pVdW5lT3dzSWIvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/DDGibN3kAo1ZigxD3zUuneOwsIb/?mount_node_token=doxlgShPvGcC3Ym347DPfr0Tesg&mount_point=docx_image" data-width="2938" data-height="1410" data-lark-image-uri="drivetoken://DDGibN3kAo1ZigxD3zUuneOwsIb" data-lark-image-width="2938" data-lark-image-height="1410" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgZnPDPPxxxKgzcS4OoNJAh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusGjt68Cpc4QBHrvTHhBKqYf"><strong>4. Important Considerations When Using VROC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxuslxgm3LAEZFhjzdPtZGuuwA"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIzhQdsIZvUPBhpTJ6bxj4d"><span style="font-size: 16px;">1) VROC depends on accurate <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-moving-average-of-volume-in-trading-421863713722995712">trading volume</a> data. It is most useful when the data reliably represents trading activity in the market being analyzed.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusrkoPlYmaidPicPvBfF1Wgd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqdiFKQ8mI60cnGnHU2Rftf"><span style="font-size: 16px;">2) In sideways markets, fluctuations in volume can create market noise and make VROC harder to interpret. A clear price trend can provide more context, but VROC is not a standalone trend signal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuskAYFNEICv8NzsdIN5OOaNb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6sNN8KPEE8b0uSIM4xi1OB"><span style="font-size: 16px;">3) VROC is a supporting tool, not an independent basis for buying or selling. Use it with price structure, <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-support-and-resistance-levels-in-trading-462151469032291328">support and resistance</a>, and other indicators, and always apply appropriate risk controls.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusn6uXPiAPxYObUAr95yZ0of"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusU8ZnZ9TKpzx1j9PbzebWkb"><strong>5. Volume Rate of Change FAQ</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6lOf0kDJtUXfu2hoMmnNvU"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxustfehwGBjPupwJa8KdSKBRc"><span style="font-size: 16px;">5.1 What is Volume Rate of Change?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvNmEJL6JFrSyaZHH7Ec95d"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuspcnNpOTZOS8l8BNnmsbjTN"><span style="font-size: 16px;">Volume Rate of Change measures the percentage difference between current trading volume and volume a specified number of periods ago. It helps traders assess changes in market participation.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxussddeG3Gpp80kgmXqTQPhth"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusU3kylNvBiGDpG0PhQphX5f"><span style="font-size: 16px;">5.2 What does VROC stand for?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMQsLvafwTAXdM3y6S7Vh4d"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbGBoebnHW2NDGb4vsgGijf"><span style="font-size: 16px;">VROC stands for Volume Rate of Change. It is a volume-based momentum oscillator that fluctuates around zero.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusldjtCn7ntvp6cHVbiXTbeb"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusiwt2AP0eXB3GSgVCEDhNhe"><span style="font-size: 16px;">5.3 What are the best settings for VROC?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxuslsIBgjg6zdnaZcUYlT0O2f"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMj5IwOglblEXI3KwLU8BPb"><span style="font-size: 16px;">Common lookback settings include 12 or 25 periods. Shorter settings tend to respond more quickly but may produce more market noise, while longer settings provide a longer-term comparison. There is no universally best setting; test and adjust the lookback period to suit your trading timeframe.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuslxT5IuWrHYc6GG6m4jMOtg"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus9XKoX9RQCPZOsSGEOhQckf"><span style="font-size: 16px;">5.4 Is On-Balance Volume useful, and how does it differ from VROC?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusl3q3yJlxzf83RA6DeEdVxK"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFHSgSwEqUgeaI2vLABxluh"><span style="font-size: 16px;"><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-on-balance-volume-in-trading-451161858902562816">On-Balance Volume (OBV)</a> is a cumulative indicator that adds or subtracts volume according to the direction of the closing price change. VROC instead measures the percentage change in volume over a lookback period, without assigning it a price direction. The two provide different perspectives and can be used together for a broader view of volume activity.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusPt4vLkUkrS8qebz6nm4kJe"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus50NmedAIG5hl5IQlEAc1Nd"><span style="font-size: 16px;">5.5 Where can I practice using VROC?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFTPOF0Y3yWo4fhrUAmN4sb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGDMrvwjA09WomqaCuF5fpc"><span style="font-size: 16px;">You can use MEXC's U.S. stock charting tools to analyze price and volume together, apply VROC in your trading analysis, and gradually refine your strategy.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusAYjJKEvV7MluMQHLV2VLje"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuspjGSRALDhliiMJUFeYfBSe"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusdXASg3agUL5G4LaIuyVbWc" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-slow-stochastic-oscillator-slowkd-in-u-s-stock-trading-499226348286023680" style="font-size: 16px;">How to Use the Slow Stochastic Oscillator (SLOWKD) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusZSNs4oqBU7MduEhDE4Mk5c" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-detrended-price-oscillator-dpo-in-u-s-stock-trading-498339815496500224" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Detrended Price Oscillator (DPO) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusil4xVOmJppi5pVxANTvBYb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-dbcd-in-u-s-stock-trading-493141126951843840" data-lark-is-custom="true" style="font-size: 16px;">How to Use DBCD in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusYaqaqZk4oHT5KeEorpzjXf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-displaced-moving-average-dma-in-trading-447820795253059584" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Displaced Moving Average (DMA) in Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusNfcEtbdhCGGVhAT8TbJekd" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-psychological-line-psy-indicator-in-trading-443492945687418880" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Psychological Line (PSY) Indicator in Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus85QqaI0Ay7GdjGjlFlfCJb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-cr-energy-index-in-trading-441192234786152448" data-lark-is-custom="true" style="font-size: 16px;">How to Use the CR Energy Index in Trading</a></div></li></ul></div>

<div data-page-id="LwoRdX7BNoMNJrxLTbfuCKrZsdf" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxusPQMq9EplHpMfHWtKYCAs3d"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-doxus4SLNhjq4XHOD2wB5WSduqh" data-list="bullet"><div><span style="font-size: 16px;">The slow stochastic oscillator is a momentum indicator that fluctuates between 0 and 100.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus1lWjAD4nnYq9zVdHkF3mxK" data-list="bullet"><div><span style="font-size: 16px;">It smooths short-term price fluctuations, producing a steadier line than the fast version and helping filter market noise.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusYb864Hq4DayOYhkbQ72ERf" data-list="bullet"><div><span style="font-size: 16px;">A common parameter setting is (14, 3, 3). Readings above 80 indicate overbought conditions, while readings below 20 indicate oversold conditions.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusBq7yIAsDNZLRDxtc6OnNRd" data-list="bullet"><div><span style="font-size: 16px;">Crossovers between the K and D lines and divergence patterns are key tools for identifying potential buy and sell signals.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus1mVvRh1qZ3U0IMSqCQ2NEg" data-list="bullet"><div><span style="font-size: 16px;">The same analytical principles can also be applied to cryptocurrency trading on MEXC.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxuscFn1mSpSAifaO5IwzPIcbb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusAc4nob8lz9aL8BaefolGvA"><strong>1. What Is the Slow Stochastic Oscillator?</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus4RleW7IBgZ8WzP2eaX4r2c"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusICeglYT3JRWfDBCZNL2iHf"><span style="font-size: 16px;">The slow stochastic oscillator (SLOWKD) is a smoothed version of the momentum indicator developed by George Lane in the late 1950s. It measures where the closing price sits within the high-low range over a given period. Traders use it to identify potential trend reversals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusEXW7tOMZ1vN8dgMJw7SJAf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHTVGkIMpgVtXgCu0G81Xce"><span style="font-size: 16px;">The slow stochastic oscillator builds on the original <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-stochastic-oscillator-in-trading-427169948248728576">stochastic oscillator</a>, also known as the fast stochastic oscillator. It applies a moving average to the K value to smooth short-term price fluctuations and help filter market noise when assessing potential entries and exits. Its values remain between 0 and 100, making it useful for identifying overbought and oversold conditions.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYR41T78sZdmsdYWBB4cB3g"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus9i3hp9bYbdhYk6i4T5l71d"><strong>2. Slow Stochastic Oscillator Settings</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusow83kDFDclPbRA5kiOt7lb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHHOP7HVHUkZK86yq9QTeRg"><span style="font-size: 16px;">A common parameter combination for the slow stochastic oscillator is (14, 3, 3). The first number, 14, represents the lookback period, which can be measured in days, weeks, or intraday intervals. The second number, 3, is the moving average period used to smooth the K value. The third number, 3, is the moving average period used to calculate the D value.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8InX1dfibhd6vQbjJYaEEe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus1B4Jgqxp7qcFt0EKw6tfQh"><span style="font-size: 16px;">Settings can be adjusted to suit different trading styles. A shorter lookback period, such as 5 or 10, makes the indicator more sensitive, generating more signals but also more market noise. This may suit short-term traders. A longer lookback period, such as 20, produces a smoother indicator with fewer signals and may suit swing traders. Some short-term traders use (5, 3, 3) for greater sensitivity. On <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>, users can customize the SLOWKD parameters available in the U.S. stock chart's "Index Loading" panel to suit different instruments' volatility.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusaqmBWAZk2TuV48UPqFOkJd"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"74401aca-2424-4d02-9352-4dbc272b56f3","height":1416,"width":2938,"currHeight":1416,"currWidth":2938,"natrualHeight":1416,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FFQvvbaqxvoBbhnxxLg1uBUPMsEd%2F%3Fpreview_type%3D16","file_token":"FQvvbaqxvoBbhnxxLg1uBUPMsEd","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgy6fNCLmVg33L31phED1oPc"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F202611041545551174keBDTKP5nyQaU.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJGUXZ2YmFxeHZvQmJobnh4TGcxdUJVUE1zRWQiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGd5NmZOQ0xtVmczM0wzMXBoRUQxb1BjIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9GUXZ2YmFxeHZvQmJobnh4TGcxdUJVUE1zRWQvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/FQvvbaqxvoBbhnxxLg1uBUPMsEd/?mount_node_token=doxlgy6fNCLmVg33L31phED1oPc&mount_point=docx_image" data-width="2938" data-height="1416" data-lark-image-uri="drivetoken://FQvvbaqxvoBbhnxxLg1uBUPMsEd" data-lark-image-width="2938" data-lark-image-height="1416" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusppJJk9NUG1VvDIh1onDXUh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusMHqSizNpPzNxTl2dLZVZyg"><strong>3. How to Identify Buy and Sell Signals With the Slow Stochastic Oscillator</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIx1NFpzJ1b8lhQdCKiM2Wd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusAPWRrLsDQoUSBzh5fLvYpf"><span style="font-size: 16px;">1) Overbought and oversold conditions. A reading above 80 places the indicator in the overbought zone, where traders may watch for a potential pullback. A reading below 20 places it in the oversold zone, where traders may watch for a potential rebound. However, the indicator can remain above 80 during a strong uptrend or below 20 during a strong downtrend. A single reading should not be used as a standalone entry signal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusLm5aFT9I87sihvImtZCvVd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus1pNdHIpj8nxMP7ukiL30Ef"><span style="font-size: 16px;">2) <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-golden-cross-and-death-cross-signals-in-trading-458446716142076928">Golden cross and death cross</a> signals. When the K line crosses above the D line near 20, traders may interpret it as a potential buy signal. When the K line crosses below the D line near 80, it may indicate a potential sell signal. Crossovers near the 50 midpoint generally provide less context than those near the extreme zones and should not be relied on alone.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusCJeR0IPkTp3TzhbJtv2HFh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGTYrKQnGv3DTK3vGOFokug"><span style="font-size: 16px;">3) Potential bottoming signals. If the indicator forms repeated bullish crossovers below 20 and then rises back above 20, it may suggest that a bottom is forming. Traders can use this as a potential entry signal, rather than treating it as proof that the bottoming process is complete.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqNCDiD1WZRljkbEoY8YoPg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusY2aKJaOtwW1U2VlnZpCEUb"><span style="font-size: 16px;">4) Divergence patterns. Bullish divergence occurs when the price makes a lower low while the indicator forms a higher low, suggesting that downward momentum may be weakening. Bearish divergence occurs when the price makes a higher high while the indicator forms a lower high, suggesting that upward momentum may be fading. After a divergence appears, traders can wait for the indicator to cross the 50 midpoint in the expected direction or for the price to break a key support or resistance level before acting.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusnNKLZzHfRk8RGPardmi6Wc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswV3Ovz941hLwnN2h1i2vRg"><span style="font-size: 16px;">5) Trading with the trend. In an uptrend, focus on recoveries from oversold conditions rather than treating repeated overbought readings as automatic sell signals. In a downtrend, focus on declines from overbought conditions rather than treating repeated oversold readings as automatic buy signals. This helps align potential trades with the broader trend, but does not guarantee a higher win rate.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusm9vescXBIPyQVahQnC52wb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusBcJVdpdDrAJsZOg9RblQ7d"><strong>4. Fast vs. Slow Stochastic Oscillator</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusoHRoAP9zqlqBNKlYpk4KOc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusAoSSkqznZeBBD4W7MLd4ug"><span style="font-size: 16px;">The fast stochastic oscillator uses the unsmoothed K value, producing a more volatile line and more frequent signals that can be misleading. The slow version typically applies an additional three-period moving average to K. This creates a smoother line that is less sensitive to price changes and helps filter market noise, although smoothing does not guarantee more accurate signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusLqq3eoZZWBnnHCOBjFYdIe"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxushrEetbRSt0sSDWPwYc4x6b"><strong>5. Slow Stochastic Oscillator vs. Relative Strength Index</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusuVUUGmGHZ6tVv9rcHgmGZe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXTEqRU2Eg1yMzOJKqxmoyg"><span style="font-size: 16px;">The <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-relative-strength-index-rsi-in-trading-425570029981283328">Relative Strength Index (RSI)</a> is calculated from the magnitude of price gains and losses over a given period. The slow stochastic oscillator instead measures the closing price's position within the period's high-low range.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusLUQVXMVqr6XaBTr0bVpUae"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxustGa8jtulfglyZt0A4pXVzf"><span style="font-size: 16px;">Despite its smoothing, the slow stochastic oscillator may move between overbought and oversold zones more frequently than RSI. RSI may produce fewer extreme readings, although the relative behavior of the two indicators depends on their settings and market conditions. Neither is universally better. Many traders use them together to cross-check signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6Acg6VuHGqBHN0MdeRlQEd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus12qwZ1qbR0xYDbZ9K68mo5"><strong>6. Tips for Using the Slow Stochastic Oscillator on MEXC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIKNB2s9YTudwEsgVytWq4e"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusaTkljF7rkJfRwocPNpI9fe"><span style="font-size: 16px;">MEXC's <a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">U.S. stock trading</a> interface includes candlestick charting tools that let users add SLOWKD and customize its parameters. Beginners can follow these principles:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus7zbWWxRCPYGsu1ypN2HBmg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus9HbFXDEZsvzBagPaWFsaSg"><span style="font-size: 16px;">1) Combine the slow stochastic oscillator with trendlines, <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-support-and-resistance-levels-in-trading-462151469032291328">support and resistance levels</a>, and other technical analysis tools to look for opportunities supported by multiple signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusG9Qv4Zqzxa5SYymgzbUHqe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswcieaDhKtjiTKdLgF1XVUT"><span style="font-size: 16px;">2) Test a strategy with small positions before considering a gradual increase in position size.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJsdCDQQfvk201La0iHaJXe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuso9bWbNm8dmZlxokRMf0uDh"><span style="font-size: 16px;">3) Always set a stop-loss. Technical indicators can help assess probabilities, but no indicator can guarantee that every signal will be accurate.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusM3qjflCjhxw4NIoyrCDnMd"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusX7tT1qpXQ2APddjVWTr6Hb"><span style="font-size: 16px;">*BTN-<strong>Trade U.S. Stocks</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">https://www.mexc.com/trade-stocks</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYQAvoHfKuWNrgOEXH22Dlc"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"632c89ec-6e36-4918-8f0b-1f827aae07f6","height":1408,"width":2938,"currHeight":1408,"currWidth":2938,"natrualHeight":1408,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FOkp1bCdpro9zkFx1f2MuycW6skh%2F%3Fpreview_type%3D16","file_token":"Okp1bCdpro9zkFx1f2MuycW6skh","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgfrtNR8vJMq95DcZG4RuV4c"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261104154555498lVKlQRsSzkKBem.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJPa3AxYkNkcHJvOXprRngxZjJNdXljVzZza2giLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdmcnROUjh2Sk1xOTVEY1pHNFJ1VjRjIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9Pa3AxYkNkcHJvOXprRngxZjJNdXljVzZza2gvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Okp1bCdpro9zkFx1f2MuycW6skh/?mount_node_token=doxlgfrtNR8vJMq95DcZG4RuV4c&mount_point=docx_image" data-width="2938" data-height="1408" data-lark-image-uri="drivetoken://Okp1bCdpro9zkFx1f2MuycW6skh" data-lark-image-width="2938" data-lark-image-height="1408" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfiCCZfzjE7KpvlkmmRF0Bd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusitDYWcvm3q6vrw4T2EqKRe"><strong>7. Slow Stochastic Oscillator FAQ</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus7efr6fr4QTFq0He90NFend"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusmgvG4FyQe74RXsKQ6ZsS6e"><span style="font-size: 16px;">7.1 What are the best settings for the slow stochastic oscillator?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusReJf1u6UyRKTyFJBgccOoh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdrnjYweOYg4BPfopEmviYf"><span style="font-size: 16px;">A common starting point is (14, 3, 3). Short-term traders may use (5, 3, 3) for greater sensitivity, while swing traders may use (20, 5, 5) to reduce market noise. The most suitable settings depend on the trading timeframe and market conditions.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusS7S0WXncKHFuNarvxyS73e"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusuWR1xCZB4ligxz85b9G0Rh"><span style="font-size: 16px;">7.2 How can the slow stochastic oscillator help identify entry and exit points?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6rFQipcU3YEVkwIVj9FizD"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus7mKA0heTIYUGQCOGXWoptc"><span style="font-size: 16px;">A K line crossover above the D line near 20 may indicate a potential buy signal, while a crossover below the D line near 80 may indicate a potential sell signal. A move back above 20 from the oversold zone can support a rebound signal, while a move below 80 from the overbought zone can support a pullback signal. Assess these signals alongside divergence patterns and the broader trend.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusVcw85epHO2o8icxIHT0WIh"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusjjcEzoHFhtFlmeLweM12eV"><span style="font-size: 16px;">7.3 Is the slow stochastic oscillator better than RSI?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus9EfxjHXuFH0QDMlk6gzaIg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusCcO2AiMHyVUCivJK5N48ld"><span style="font-size: 16px;">The slow stochastic oscillator can be more sensitive and generate more signals in range-bound markets, while RSI may produce fewer extreme readings. Their behavior depends on the settings and market conditions. Neither is universally better, and the two can be used together to cross-check signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuszg1fUiyV17MN9oIEAEXkMe"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus2Xs5y2bxk5Cqehmq2j0mr3"><span style="font-size: 16px;">7.4 What is the difference between the fast and slow stochastic oscillators?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMi8WyLDkSqUy27E1mahFhf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusX6SH4tfOwalArnMKUnnX9U"><span style="font-size: 16px;">The fast version uses the unsmoothed K value, producing a more volatile line and frequent signals. The slow version typically smooths K with a three-period moving average to help filter market noise. With the standard three-period smoothing, the slow version's K value equals the fast version's D value.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMe2AvdoaxIPAG1lJL34ykf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus5KCNseHXMsoLrUvpe2uzOd"><span style="font-size: 16px;">7.5 Should I sell immediately when the slow stochastic oscillator rises above 80?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusNHPaaG569imCOyOgrNBsXb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGIjZWn66WyD8wbxA9joDyc"><span style="font-size: 16px;">No. An overbought reading does not necessarily mean the price will fall. The indicator can remain above 80 for an extended period during a strong uptrend. Instead of selling solely because it is overbought, traders may wait for it to fall below 80 and look for confirmation from price patterns before making a decision.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6fAU9taebej9ZZBMkbjCxr"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusDck3piclPJTV0OaPefCtMg"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusVJ6rsCDsAVKb0Mlxwjpk1f" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-detrended-price-oscillator-dpo-in-u-s-stock-trading-498339815496500224" style="font-size: 16px;">How to Use the Detrended Price Oscillator (DPO) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusIcO4Vq19rLsvLdUzIt1htc" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-dbcd-in-u-s-stock-trading-493141126951843840" data-lark-is-custom="true" style="font-size: 16px;">How to Use DBCD in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusNSKc1VHVSRptFvF6bLb0rb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-adtm-indicator-in-u-s-stock-trading-490185227379520512" data-lark-is-custom="true" style="font-size: 16px;">How to Use the ADTM Indicator in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusVuu0m0UGgac4C0LPY7bDre" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-simple-moving-average-sma-in-trading-456004357219401728" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Simple Moving Average (SMA) in Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusx7EGQLOCOIKNZJaifYemzb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-ease-of-movement-emv-in-trading-452624432705815552" data-lark-is-custom="true" style="font-size: 16px;">How to Use Ease of Movement (EMV) in Trading</a></div></li></ul></div>

<div data-page-id="Hjkad2WpPoyI5mx5c3luJq8wsNd" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-3 ace-line old-record-id-doxusL0LSUwHGZQEvcxTm8i1PFg"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusX9KQJcJ80AFSGoYzlbt79d" data-list="bullet"><div><span style="font-size: 16px;">The Detrended Price Oscillator (DPO) is a technical indicator designed to remove longer-term trends and highlight shorter-term price cycles.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusHuIrOv1VIgjzoSSOHHWAnf" data-list="bullet"><div><span style="font-size: 16px;">DPO is calculated using the difference between a historical closing price and a simple moving average.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusyDbVhxQksBjsJ68QdYkS8g" data-list="bullet"><div><span style="font-size: 16px;">DPO can help traders assess potential overbought and oversold levels, identify cycle highs and lows, and analyze potential entry and exit timing.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusqOg80R1wcHmAycyoLkReih" data-list="bullet"><div><span style="font-size: 16px;">DPO is not a momentum indicator and should not be used on its own to assess trends. It is best used alongside other indicators.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus2u1hQJFIbrNQVWY3ycIqt9" data-list="bullet"><div><span style="font-size: 16px;">Users can add DPO to MEXC's U.S. stock charts to support their analysis.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusw55rtai3UwpStiL73xsa8g"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusMpUJz1GLzSRNhKtjMryCMc"><strong>1. What Is the Detrended Price Oscillator?</strong></h2><div class="ace-line ace-line old-record-id-doxusQn7eRfxvTLaUBzyZBDO7Hc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusyvFewdkZnZQ0GQ7HZQwFEh"><span style="font-size: 16px;">The Detrended Price Oscillator (DPO), introduced by Walt Bressert, is an oscillator used in technical analysis. It aims to remove the influence of longer-term price trends so traders can identify shorter-term price cycles more clearly. A cycle is the time between successive peaks or successive troughs.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZC73O1s42oacPnd36SKDhe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusDxKce2TYZ2nEnOKP20piQe"><span style="font-size: 16px;">Unlike momentum indicators such as <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-macd-indicator-in-trading-426304203100942336">Moving Average Convergence Divergence (MACD)</a>, DPO does not measure how quickly prices change. Instead, it compares historical prices with a displaced <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-simple-moving-average-sma-in-trading-456004357219401728">simple moving average (SMA)</a> to highlight historical price highs and lows. This makes it better suited to cycle analysis than real-time trend tracking.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusCkthWJ5liEiXCakloULgbf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxustYCjNHS1QAJgKqY2fyBLe7"><strong>2. How Is DPO Calculated?</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxustKnOxzDG4DA3IMUyx3WR6b"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYaZ8r5jbc76E1IDYuZgoqd"><span style="font-size: 16px;">The DPO formula is: DPO = Closing price from (X / 2 + 1) periods ago − Current X-period SMA</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6fjbhXkzl8ns5FOaqFPTmf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuso9KY7lfFBpkty2r7CMPuVf"><span style="font-size: 16px;">X is the user-defined lookback period. For a commonly used 20-day DPO:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus2snP4qL2eVqgHEwtk3vgcF"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusCDnaTcy44YDgtbO0blD3gd"><span style="font-size: 16px;">1) Calculate the 20-day simple moving average.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJz7pudhokVNfY0PQALDhXe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfQl7NvcKw1RxeQ0FA5eVJJ"><span style="font-size: 16px;">2) Calculate the displacement: 20 / 2 + 1 = 11 periods.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusOGDMoFU5G0yHzWu3qIyKuK"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusloi02yBGYIFWqnXGMCJeEb"><span style="font-size: 16px;">3) Subtract the 20-day SMA value from the closing price 11 periods ago to obtain the DPO value.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMNTVWnK2SaPImY4O65Zbph"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusW4v44VEP3O87oTVKWdNevh"><span style="font-size: 16px;">The displacement aligns the moving average with an earlier price observation, helping filter out longer-term trends and highlight shorter-term cyclical fluctuations..</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusANBWtjZXsYVeQpuCDuYY6d"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"1df74812-4fe0-406f-8c04-e2b6a4311303","height":1468,"width":2938,"currHeight":1468,"currWidth":2938,"natrualHeight":1468,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FXeNNbyp0toQKqLxh6jpuTTKls6b%2F%3Fpreview_type%3D16","file_token":"XeNNbyp0toQKqLxh6jpuTTKls6b","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgOaumRLT0IIlBcTqKqWuNTe"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261103110549593j0i0nVEpGtO44R.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJYZU5OYnlwMHRvUUtxTHhoNmpwdVRUS2xzNmIiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdPYXVtUkxUMElJbEJjVHFLcVd1TlRlIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9YZU5OYnlwMHRvUUtxTHhoNmpwdVRUS2xzNmIvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/XeNNbyp0toQKqLxh6jpuTTKls6b/?mount_node_token=doxlgOaumRLT0IIlBcTqKqWuNTe&mount_point=docx_image" data-width="2938" data-height="1468" data-lark-image-uri="drivetoken://XeNNbyp0toQKqLxh6jpuTTKls6b" data-lark-image-width="2938" data-lark-image-height="1468" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGqeu2gizJk1ChEkCIN4DSg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus1bIzkWoK0aQp0oG2dKnUOd"><strong>3. How to Use DPO</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgfVmhz8TyJZaNxdO8Poi6h"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus37pw8AkN8r5TiIvhn13wbd"><span style="font-size: 16px;">DPO fluctuates above and below zero. Common ways to interpret it include:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus7LqGxVNx1Y0jAHqwsL37ae"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdhG1h0gxAdyJN4VTH2tPzE"><span style="font-size: 16px;">1) Interpreting positive and negative readings. A positive DPO value indicates that the historical closing price used in the calculation is above the SMA value used for comparison, which some traders interpret as a bullish indication for that historical period. A value below zero means it was below the average and may be interpreted as bearish. These readings do not establish the current trend.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJEFBNZmKud7pdHC6e6l47g"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuscAjauF8L7YkuN9MmfGgfdd"><span style="font-size: 16px;">2) Zero-line crossovers. </span></div><div class="ace-line ace-line old-record-id-LjX0dy8Q4o1hNAxcrxsueI04snf"><span style="font-size: 16px;">Some traders examine historical zero-line crossovers to identify changes in cyclical price behavior. However, because DPO is displaced into the past, these crossovers should not be treated as real-time buy or sell signals.</span></div><div class="ace-line ace-line old-record-id-JbzFd3wOTolVInxurj0uPOyrsab"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8u5EvkpC7BDJQRbgI1QAPc"><span style="font-size: 16px;">3) Overbought and oversold zones. Traders can set an upper reference level above zero to identify potential short-term cycle highs and a lower reference level below zero to identify potential cycle lows. Reaching either level may suggest relatively overbought or oversold conditions within the cycle, rather than confirm a price reversal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusUYhoFoB0304jNX9HRDm88i"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXUs7Z2SwOdQ6VWGoboVR5T"><span style="font-size: 16px;">4) Measuring cycles. By observing historical DPO peaks and troughs and measuring the time between successive peaks or successive troughs, traders can estimate a typical cycle length. For example, if troughs have occurred roughly two months apart, this may help identify when to watch for the next potential buying opportunity near a cycle low.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusccVmvBSqXivYBeqar2q9nd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusT9G6G2JRLnfNyHfeTjd5gc"><strong>4. Suggested DPO Settings</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusrOK5ZGb8XFaCBxNBCgCocc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuss76AGPhKvnMQJxOSt1qtTg"><span style="font-size: 16px;">A common default DPO lookback is 20 periods. Beginners can use the following approaches as a starting point:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus36n34z6lE1aQE5xrCYuhCh"><span style="font-size: 16px;"><br></span></div><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusc1kQ7cx92uNe74RTCAQSyB" data-list="bullet"><div><span style="font-size: 16px;">Short-term trading: A shorter lookback, such as 14 periods, can help highlight shorter price cycles.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusVlFjopNxynD02Q1yxbZzDe" data-list="bullet"><div><span style="font-size: 16px;">Medium-term analysis: The default 20-period setting can serve as a starting point for analyzing intermediate cycles.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusNLpwU9Yl5L5zD0D0RPGrEc" data-list="bullet"><div><span style="font-size: 16px;">Weekly charts: Consider a longer lookback and keep the timeframe units consistent.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusuGuf0ix7KO8zFcds2qkHgc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusvwcPfS4HpaWeLfxPGvTKZe"><strong>5. Three Ways to Incorporate DPO into a Trading Strategy</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZVTnDBNnExMygIHEmTWKVg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiKbJ1sxWUbRoEBYbXjXvLd"><span style="font-size: 16px;">Strategy 1: Combine zero-line crossovers with candlestick patterns. A historical DPO crossover above zero may be examined alongside bullish candlestick patterns from the corresponding period, such as bullish engulfing patterns or hammers. Conversely, a crossover below zero may be assessed alongside a bearish pattern when considering an exit. The historical alignment of DPO must be taken into account when comparing the signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusKTcoN0YbM3oAyg1HIechue"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus3emXgUzkk6Ri0XpPeNqer1"><span style="font-size: 16px;">Strategy 2: Use cycle highs and lows to assess timing. The cycle length estimated from DPO can help traders look for potential buying opportunities near cycle lows within an uptrend, or consider taking profits near cycle highs. The time between a peak and a trough can also provide a reference for a potential holding period.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuscq5qBI0JQOgpfoFFeb7Mse"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjPpA2QNHLJQWrClocqQGfc"><span style="font-size: 16px;">Strategy 3: Use volume for confirmation. Trading volume reflects market activity. Traders can give more weight to DPO-related setups when supported by rising or elevated volume, and avoid relying on setups during low-volume periods to reduce the influence of market noise.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJgeWk9chGmqYQettUMgRdh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusKRgtfW0QfTjbyPqL7Hib8b"><strong>6. Limitations of DPO</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZqKJMHGjeA6mhI65Et5xge"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHMVFqtSIQ1aqfZ6r8qDw1b"><span style="font-size: 16px;">DPO can be useful, but beginners should understand its limitations:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusxITGcbKuF7i5PjA8kuCDbd"><span style="font-size: 16px;"><br></span></div><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusgNrEychAMfMRs3ksu5rOzb" data-list="bullet"><div><span style="font-size: 16px;">It should not be used alone: DPO is a supporting tool. Historical cycles may not repeat, and their duration can lengthen or shorten.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus6kx8fWpVixH51xpsukDCIf" data-list="bullet"><div><span style="font-size: 16px;">It does not establish trend direction: Even if price appears to be near a cycle low, buying during a sustained downtrend can still result in losses.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusAVRSQpFTbDlmIDsoLo1d4f" data-list="bullet"><div><span style="font-size: 16px;">It is backward-looking: When displaced into the past, DPO does not reflect the latest price in real time and is not suitable for assessing the immediate trend.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusORKh4bEUWDe8XCSAvHeXLg" data-list="bullet"><div><span style="font-size: 16px;">Peaks and troughs vary in height: Not all peaks or troughs reach the same level. Important highs and lows should be assessed alongside price action.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusUjHcyEk1johhufLvNa9Llh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjmquMS7fz3nVFrdzsWI2Jh"><span style="font-size: 16px;">Use DPO alongside trend and momentum indicators, and set stop-loss orders to help manage risk.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdTegbSatHgzdVgwBZRBQsh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusnZzSlXjvuOvqxTDpIggS9c"><strong>7. How to Use DPO on MEXC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusyAKEjonHXAishdysG5XFL7"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuskK2va2idASLSCNkMLeVhEf"><span style="font-size: 16px;">MEXC's U.S. stock trading interface provides charting tools that allow users to add DPO to their analysis. Follow these steps:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgEQyCR9TQIzBiK9boFMGQb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusipjKB4dg9yximc0IVNbHCd"><span style="font-size: 16px;">1) Log in to your MEXC account and open the U.S. stock trading page.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbJyeWkMDc126u6M9tMHgMJ"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYFY35AvZoo8WqZcI3ICXKb"><span style="font-size: 16px;">2) Open the chart's <strong>Indicator Loading</strong> panel, then search for and add <strong>DPO</strong>.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdRdrZ6fz7mVxuRou6q09jg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus57zYTpWJlLrjYDUwrD1RDg"><span style="font-size: 16px;">3) Adjust the lookback period to suit your trading style. Assess the indicator alongside candlestick patterns, volume, and other tools before placing a buy or sell order.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusifw38EvOWu6MGZLqEhbEHb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusWQrhib5e5zBCX8GZ0no7Tc"><span style="font-size: 16px;">Beginners are advised to first use MEXC's charting tools to observe and review historical setups. Once familiar with DPO's characteristics, they can gradually incorporate it into live trading while maintaining appropriate position sizing and risk controls.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbbkDbtXxZyTAr1CDqVg1Bb"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxuseAPP6FXX3gMlnD61kYO8jf"><span style="font-size: 16px;">*BTN-<strong>Trade U.S. Stocks</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">https://www.mexc.com/trade-stocks</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusm7npXaW77tpk5oJE6NHknd"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"45d0e47f-6987-45cf-a6b2-d4997b0bfd24","height":1468,"width":2938,"currHeight":1468,"currWidth":2938,"natrualHeight":1468,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FQnq3b0QVVoxvnfxTRz4utVIxsOh%2F%3Fpreview_type%3D16","file_token":"Qnq3b0QVVoxvnfxTRz4utVIxsOh","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlggj35jFNjHSWOEtZzSRYRVg"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261103110555362O4kx1sWeUchryK.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJRbnEzYjBRVlZveHZuZnhUUno0dXRWSXhzT2giLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdnajM1akZOakhTV09FdFp6U1JZUlZnIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9RbnEzYjBRVlZveHZuZnhUUno0dXRWSXhzT2gvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Qnq3b0QVVoxvnfxTRz4utVIxsOh/?mount_node_token=doxlggj35jFNjHSWOEtZzSRYRVg&mount_point=docx_image" data-width="2938" data-height="1468" data-lark-image-uri="drivetoken://Qnq3b0QVVoxvnfxTRz4utVIxsOh" data-lark-image-width="2938" data-lark-image-height="1468" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusVAfkbscnzHMaalXVIpl6ff"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusLJp3Eb8Hq98W81vp08NMvf"><strong>8. DPO FAQ</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusds9IULyDNvIokHFSgcozje"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusuvEWfPATGJbEdKAWLyIsdg"><span style="font-size: 16px;">8.1 What is the Detrended Price Oscillator?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusaXMOPxbDLN8AwXd1fGZiCb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus7dUzJOS1qdn6Itbu8qkogc"><span style="font-size: 16px;">DPO is an oscillator designed to remove longer-term price trends and focus on shorter-term price cycles. It compares historical closing prices with a displaced simple moving average to help identify cyclical highs and lows.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusSTIWoEfasfmIoBXk3aCFPc"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusXXbpJczbhzeq2RLl2LFtKd"><span style="font-size: 16px;">8.2 What is the DPO formula?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusNbCjbXi88okrakS1cEYind"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8scLuE2GTe3TUevifO36Wh"><span style="font-size: 16px;">DPO = Closing price from (X / 2 + 1) periods ago − Current X-period SMA.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus4hoR1qbrqpBlqPB88qK67g"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIliIPRUoUhe6Bbn09Y7Ypb"><span style="font-size: 16px;">For a 20-period setting, subtract the 20-period SMA value from the closing price 11 periods ago.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusaOXnXXKawKkQwYDTIahpyb"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusKr7ZhkLLJu9KcRbM40YC1g"><span style="font-size: 16px;">8.3 How can DPO be used in trading?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8d23RHvr2aEmfJQUp1fpo5"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiKCU9lrG8DfX9RO4bFDeHh"><span style="font-size: 16px;">Common approaches include examining historical zero-line crossovers as potential buying or selling indications, measuring cycle intervals to estimate potential future highs and lows, and assessing potential exits near overbought levels or entries near oversold levels. These are historical cycle references, not standalone real-time signals, and should be checked against other indicators.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusNe1bQa01T9Q9yo066e8skf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusfh4sExnILpBgC1zVrfhu1d"><span style="font-size: 16px;">8.4 What trading strategies use DPO?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusX8xWoXusnrQPlaW1HGTW5f"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusKCW5FOUwOhy1wIJa8bk0qc"><span style="font-size: 16px;">Three common approaches combine zero-line crossovers with candlestick confirmation, use estimated cycle lengths to assess entry and exit timing, or use volume to filter setups. Regardless of the approach, use stop-loss orders and control position size.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusoYi3X971sIADKzu8SyQJjf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuspM67zqqduso5jxhaPXAszw"><span style="font-size: 16px;">8.5 What are the best DPO settings?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxuszlajtHNmTjDOoXQIFeswNu"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusB5PvXY0JThFoUHOdk7gkah"><span style="font-size: 16px;">There is no universally best setting. A common default is 20 periods. Short-term traders may use a shorter lookback, while medium- to long-term analysis may use a longer one. Backtest settings to assess their suitability for your instrument, chart timeframe, and trading style.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuszVquEVJJZRudPG8kauEI0d"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusStM2pgR5Gzavsj0p6vm6Yc"><span style="font-size: 16px;">8.6 Is DPO a momentum indicator?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusweEyRHWP8WnxhD31KGGDle"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusLL5fdfcTX501bkc3VkBgtc"><span style="font-size: 16px;">No. In its centered form, DPO is displaced into the past and does not measure the latest price momentum. It is designed to identify price cycles rather than the speed of price increases or decreases.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswGe5O3aR9aSSm7E2P6PwZc"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusGEmdfgQHtX5ZLrme9jMFyb"><span style="font-size: 16px;">8.7 Can DPO be used on its own to make buy or sell decisions?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiHDTm6hNPzEyAVFM7tap2e"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswkuzuTmjcL51KGNvXoLuyd"><span style="font-size: 16px;">It is not recommended. DPO is backward-looking and does not establish trend direction, so relying on it alone can lead to misinterpretation. Use it as a supporting tool alongside trend indicators, volume indicators, and price patterns.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusneSXi6yuLi0O69hL89JQqh"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus66jxyLeYpHW0RoP4Ckmflm"><span style="font-size: 16px;">8.8 Is DPO available on MEXC?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus4ncYg8oUbD5SHHiMdlPmxe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusM5OLLY6dPsiD7JGSJxKEJb"><span style="font-size: 16px;">Yes. MEXC's U.S. stock charting tools support DPO and other technical indicators. Users can customize the parameters and combine the indicator with other analysis tools when developing a trading strategy.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusNuDOGTSuJwn4YRe2A7t6hd"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusgqBRHRcPevubEg3ViRXkge"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusJzOasP9D5yU73ZGhIThHle" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-dbcd-in-u-s-stock-trading-493141126951843840" style="font-size: 16px;">How to Use DBCD in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusHAab6Whehn0P1Aw4CSf5mc" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-adtm-indicator-in-u-s-stock-trading-490185227379520512" data-lark-is-custom="true" style="font-size: 16px;">How to Use the ADTM Indicator in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusiRlh4xIUQOcb8pWgijCoTe" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-price-oscillator-priceosc-in-u-s-stock-trading-488101266297817088" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Price Oscillator (PRICEOSC) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusGKLU1PX8ln3rcGRQDkcAge" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-displaced-moving-average-dma-in-trading-447820795253059584" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Displaced Moving Average (DMA) in Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus87zRpQcZLHousm6KLNAWRc" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-directional-movement-index-dmi-in-trading-437460810149061632" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Directional Movement Index (DMI) in Trading</a></div></li></ul></div>

<div data-page-id="L8E9dYOMGo0bmFxug9buTDJasEh" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxusEMlubcn3YUdBfh43RqiJgc"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusXXl8lAJqec0tgicuUxta9g" data-list="bullet"><div><span style="font-size: 16px;">DBCD is a trend indicator derived from the Bias Ratio (BIAS), with smoother lines and clearer signals.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusfcMRGmuyrCx5b3Yxmuscxc" data-list="bullet"><div><span style="font-size: 16px;">DBCD calculates and smooths the differences between BIAS values across periods, helping filter out short-term market noise.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusAKBw7Ca4YgVcjDgXr1a9ug" data-list="bullet"><div><span style="font-size: 16px;">Golden crosses and death crosses are commonly used DBCD trading signals, while its position relative to the zero line helps assess bullish and bearish momentum.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusdvoUkHumh6CrdNVwOSP4lc" data-list="bullet"><div><span style="font-size: 16px;">Bearish and bullish divergence may help identify potential price tops and bottoms.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusRu3TXD7GeTcIiRWx7HoD8g" data-list="bullet"><div><span style="font-size: 16px;">MEXC users can combine DBCD with volume indicators and other tools to make more informed trading decisions.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusEby4kXD2BYTuh34V2Ksxrh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus7cUMZUSzeWKykeGTcsFPip"><strong>1. What Is the DBCD Indicator?</strong></h2><div class="ace-line ace-line old-record-id-doxusqmUVzO6PR0F4lTIWxP7WHg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusri50yshsmralXKrYhXiUIf"><span style="font-size: 16px;">Bias Convergence Diverge (DBCD) is a momentum-based technical indicator derived from the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-bias-ratio-bias-in-trading-432486920192694272">Bias Ratio (BIAS)</a>. It shares similar principles, construction methods, and applications with BIAS. By combining moving averages with exponential smoothing, DBCD measures the differences between BIAS values across periods to help identify underlying price momentum and potential trend reversals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYRkgOMKjDQMenKt4vrKUKh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusP98iIXL8jYNc6geDBQk5ac"><span style="font-size: 16px;">Compared with traditional BIAS, DBCD aims to stay closely aligned with price movements while producing smoother lines and clearer signals. This helps reduce the market noise caused by short-term fluctuations. For users new to technical analysis, its smoother readings can make DBCD a relatively accessible starting point.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusL7T4r6JX1U4EIuQB990cTg"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"97f4ef2e-1788-4046-a902-805409f3ffc2","height":1410,"width":2938,"currHeight":1410,"currWidth":2938,"natrualHeight":1410,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FDY4Fb60VkoNW3CxoZe5uX5UTs6d%2F%3Fpreview_type%3D16","file_token":"DY4Fb60VkoNW3CxoZe5uX5UTs6d","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlg8Zi9sKrSwA0mMzK6tLJV5c"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F202610271059203596Hu74G9HA0Q9X6.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJEWTRGYjYwVmtvTlczQ3hvWmU1dVg1VVRzNmQiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGc4Wmk5c0tyU3dBMG1Neks2dExKVjVjIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9EWTRGYjYwVmtvTlczQ3hvWmU1dVg1VVRzNmQvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/DY4Fb60VkoNW3CxoZe5uX5UTs6d/?mount_node_token=doxlg8Zi9sKrSwA0mMzK6tLJV5c&mount_point=docx_image" data-width="2938" data-height="1410" data-lark-image-uri="drivetoken://DY4Fb60VkoNW3CxoZe5uX5UTs6d" data-lark-image-width="2938" data-lark-image-height="1410" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxussG5IHTBwwoLqlXNfmYQoyf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusWCqkMW84spJBToyWzMw2Vb"><strong>2. Key DBCD Trading Signals: Golden Crosses and Death Crosses</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusL3VBBCxfnav8VUSxSWDEcc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusB7sOkkC4Zw35qRcAYQTHkd"><span style="font-size: 16px;">A <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-golden-cross-and-death-cross-signals-in-trading-458446716142076928">golden cross</a> occurs when the faster DBCD line crosses above the slower signal line. It is generally considered a potential buy signal, suggesting that bullish momentum may be gaining strength. When it occurs near or below the zero line, it may provide a stronger indication of a potential trend reversal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFc16mPXMKLYJ4wPg7TToMR"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfKZ47NbXpGfdoWkeDtmC7e"><span style="font-size: 16px;">A death cross occurs when the faster DBCD line crosses below the signal line. It is generally considered a potential sell signal, suggesting that bearish pressure is increasing and bullish momentum is fading. When it occurs above the zero line, traders should pay closer attention to the possibility of a price top and subsequent pullback.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvty6nOJCBS3tYMKW6zC57C"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusxJ0E6glRWJSOQJzjOX7Jcf"><span style="font-size: 16px;">The zero line is also an important reference point. When DBCD stays above zero and the price remains above a key moving average, this may indicate an ongoing uptrend, during which traders may consider holding their positions in line with the trend. Conversely, a prolonged period below zero may suggest that a bearish trend is continuing.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusKv3Qi9qhW4Z6bF1LBTlQWf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusQReQF3MIeWKzytRq01J6Ha"><strong>3. Using Convergence and Divergence to Identify Potential Tops and Bottoms</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusU7H3KBNdCD9ZZeYpDMidNe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswCDhvMpxwrps0UlA9YNKJf"><span style="font-size: 16px;">Divergence is one of DBCD's key applications. Bearish divergence occurs when the price makes higher highs during an uptrend, while DBCD forms progressively lower peaks and moves back toward zero. This suggests that the underlying bullish momentum is weakening and may warn of a potential price top, prompting traders to consider reducing their positions. Bullish divergence is the opposite: the price makes lower lows during a downtrend, while DBCD gradually rises toward zero. This may indicate a shift in the balance between buying and selling pressure, with bearish momentum weakening and a potential bottom approaching.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusivpG6eZ8sIkCggIXtLFF2b"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusz91hlXSLfXguG875AJa9Gd"><span style="font-size: 16px;">Even when bullish divergence appears in a clear downtrend, traders considering a potential bottom should use small positions and keep return expectations modest. If the price encounters resistance at a key moving average or DBCD forms a death cross, consider taking profits rather than waiting for a larger rebound.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusByv61YkhZhdTJBosCe70nf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusLGNkT4tHqbYxZufGUkJLhe"><strong>4. How to Add DBCD to a U.S. Stock Chart on MEXC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIj4hjBWJyu7JrhepkYab9c"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQ6SuiYfeXkIIwT0mgsp89b"><span style="font-size: 16px;"><a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>'s U.S. stock trading charts support adding and configuring DBCD. Follow these steps:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXCAyB1S2vPuAhawtdEQEcg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusH19tNInpGx3p6fa6Zz3Gxb"><span style="font-size: 16px;">1) Log in to your account, go to the U.S. stock trading page, and open the price chart for your chosen stock.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6uX1lbxg4fD4wbxoh626nb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvxvi9IStYHHj5YFUKwo7vc"><span style="font-size: 16px;">2) Click the indicator button above the chart. In the Indicator Loading panel, search for and select DBCD.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusV8bT7KbQPdA69mrzdv0M6d"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHKGqm59RF3kxd508Cg6FMY"><span style="font-size: 16px;">3) Once the indicator is added, adjust the period parameters to suit your trading preferences. The chart will display the indicator lines automatically. Beginners are advised to start with the default settings on the daily chart and become familiar with the indicator before customizing its parameters.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdNpinWv6s0Bi2BzpaF182d"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxushsCUbx6ChznWXEqbCYd7zf"><span style="font-size: 16px;">*BTN-<strong>Trade U.S. Stocks</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">https://www.mexc.com/zh-MY/trade-stocks</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus1MVr4WS71hlzW5NTANlURg"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"c2e7fa0a-7088-42ee-9405-fb87a2ed3822","height":1406,"width":2938,"currHeight":1406,"currWidth":2938,"natrualHeight":1406,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FW3bdbJ4USo3ZFKxt1JZum4Qvslc%2F%3Fpreview_type%3D16","file_token":"W3bdbJ4USo3ZFKxt1JZum4Qvslc","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlg4tyxSFqDMg1uVwSDcuVLdd"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261027105917429J9rQadtFM5GqhZ.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJXM2JkYko0VVNvM1pGS3h0MUpadW00UXZzbGMiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGc0dHl4U0ZxRE1nMXVWd1NEY3VWTGRkIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9XM2JkYko0VVNvM1pGS3h0MUpadW00UXZzbGMvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/W3bdbJ4USo3ZFKxt1JZum4Qvslc/?mount_node_token=doxlg4tyxSFqDMg1uVwSDcuVLdd&mount_point=docx_image" data-width="2938" data-height="1406" data-lark-image-uri="drivetoken://W3bdbJ4USo3ZFKxt1JZum4Qvslc" data-lark-image-width="2938" data-lark-image-height="1406" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiMtDG4Ahp3mtTb6CCsJmhZ"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus3kWjaUU63XHONNqXwtWKUc"><strong>5. Practical Tips for Using DBCD</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusN8V89JdK3d8742QnzPaIEc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusLGwXY4IcTP6IWv7abVnLAd"><span style="font-size: 16px;">When using DBCD, beginners should keep the following points in mind:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuszsYcHIU6zszbVBJqqSpj8F"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusNHl7uV41kdlHPjpBETKcQe"><span style="font-size: 16px;">1) DBCD is a smoothed indicator and therefore has some lag. During sharp price moves or prolonged sideways trading, it may produce delayed or misleading crossover signals. Use <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-moving-average-of-volume-in-trading-421863713722995712">volume indicators</a> and the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-relative-strength-index-rsi-in-trading-425570029981283328">Relative Strength Index (RSI)</a> for additional confirmation.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswwWYKI9koNKXUivAYDrBsh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus1x1pIZhurVhvEnq7dj8XXf"><span style="font-size: 16px;">2) DBCD golden crosses and death crosses may be more useful in bearish or range-bound markets. In strongly directional markets, a trend-following approach should take priority.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus9EN5GAYseUWIdO99nyPw5Y"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFVylXjzLJ7r359EEMXkemK"><span style="font-size: 16px;">3) Signals on daily and weekly charts tend to be more reliable than those on shorter timeframes. They can help identify broader price trends and filter out intraday market noise.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxussx554C1hBHQHCezWDP8B5e"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusPrs2a3ieCcZFiBIFhkLOTg"><span style="font-size: 16px;">4) No single indicator can guarantee profits. Appropriate position sizing and stop-loss orders remain fundamental to risk management.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusaqDTKmZGtQDfdCyYaq2a4f"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusQFVWvYxxx4G9wvlSqZ8c5c"><strong>6. DBCD FAQ</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus0HTtl6hprV4NtfuBbDCfNc"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuscezsTnXgpDAx0I0XU5zkyg"><span style="font-size: 16px;">6.1 What is the DBCD indicator?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYKIuDRD82GJXJhRngwbq4d"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusCAEOIB58wT2NAn53ZqZnfh"><span style="font-size: 16px;">DBCD is a trend indicator derived from BIAS. It calculates the differences between BIAS values across periods and applies exponential smoothing to help identify price trends and potential reversals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiEfclReBcm5IyKRc8xBV2e"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusspWHX7Om6vBE9XGv1BWO8e"><span style="font-size: 16px;">6.2 What do convergence and divergence mean in technical analysis?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxuslBSxVzbQV0gC69puaSOP6e"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFvmB3TPBTRkLYRfB4Md4Cd"><span style="font-size: 16px;">Convergence refers to the indicator and price moving more closely together or to a narrowing difference between the values being compared. In the context of DBCD moving toward zero, this may suggest that momentum is weakening. Divergence occurs when the price and indicator move in different directions, which may signal a potential trend reversal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFhySZe0ONKdlzoHZRRuEFe"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuspe1TrcKGmgQM5C3pL6gZub"><span style="font-size: 16px;">6.3 How can I assess the degree of convergence?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusR4n2KJ3BVanbZQyT1W702N"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfMqd3170MIafs4TAyTUcgb"><span style="font-size: 16px;">Observe how quickly and how far DBCD moves back toward zero. The closer it gets to zero, with progressively smaller peaks and troughs, the greater the convergence and the weaker the momentum behind the existing trend may be.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMjuoZqmgy9W0uxfs6nFPlh"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuseEGTi2433Z7cUZzRVxNazf"><span style="font-size: 16px;">6.4 What does BIAS convergence mean?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusoy9f9OxH83NHZOlIEuoCth"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusxG8c8ji3zbpMRWYYO1t6mc"><span style="font-size: 16px;">BIAS convergence means that the gap between the price and its <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-simple-moving-average-sma-in-trading-456004357219401728">moving average</a> is gradually narrowing. This indicates that the price is moving back toward its average and that short-term overbought or oversold conditions are easing.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHFsNvIukcnyxLtXHU6EwWd"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusoREVpxHX5dwqZt72zrvEWc"><span style="font-size: 16px;">6.5 How can I assess the reliability of a divergence signal?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusRiVYuo6R5cjeTWiHDBuuCh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus0Sv43p6spJS5mBB8GMutWb"><span style="font-size: 16px;">A divergence signal can fail on its own. Check it against changes in volume, the price's position relative to key moving averages, and the trend on higher timeframes. Agreement between multiple signals may provide stronger confirmation.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgQ3Ex8aADV7ULZSqVKo3fb"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusQe0FFzKBqLuibhN95zgFOf"><span style="font-size: 16px;">6.6 Which market conditions is DBCD suited to?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusntaLL0dU36SEeVOkqsZcMb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFpUAWy2NoNBOWr9ZsDhhsf"><span style="font-size: 16px;">DBCD golden crosses and death crosses may be more useful in bearish or range-bound markets. In trending markets, its position relative to zero and its divergence signals are better suited to assessing whether a trend is continuing or losing momentum.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuseb5OMsIRdfwKYHXu0gLNlf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus5wmKngF5fOtPv8wiZFbxHh"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusY18UIHe0VaOzMVUgywuZ9c" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-adtm-indicator-in-u-s-stock-trading-490185227379520512" style="font-size: 16px;">How to Use the ADTM Indicator in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxust3uz4O82N3BvdlxRFLhOPe" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-price-oscillator-priceosc-in-u-s-stock-trading-488101266297817088" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Price Oscillator (PRICEOSC) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusn10epyHsqLiFsU5egCuvaf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-ddi-in-u-s-stock-trading-487191703893661696" data-lark-is-custom="true" style="font-size: 16px;">How to Use DDI in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusxbC3YyzIR5sACHJZv0CYag" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-support-and-resistance-levels-in-trading-462151469032291328" data-lark-is-custom="true" style="font-size: 16px;">How to Use Support and Resistance Levels in Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusOoWqvxO0dSD0cyCebhKpbf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-trade-the-dead-cat-bounce-pattern-461195228923544576" data-lark-is-custom="true" style="font-size: 16px;">How to Trade the Dead Cat Bounce Pattern</a></div></li></ul></div>

<div data-page-id="JvnAdjEEio1OdDx6v5hu4xESssf" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxussOBvHzQMZjrQ2QtVql5GIc"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusVGLoDc6lDfpTlTECL4VKvd" data-list="bullet"><div><span style="font-size: 16px;">The ADTM indicator compares upward and downward price movements relative to opening prices to assess the balance of buying and selling momentum.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusBMEujFVHyxQai1Po264kLh" data-list="bullet"><div><span style="font-size: 16px;">The indicator ranges from −1 to +1. Readings below −0.5 are conventionally described as a "low-risk zone," while readings above 0.5 are described as a "high-risk zone." These labels are reference points, not measures of actual investment risk.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus3onblCnwdIQm65DkRfDkBs" data-list="bullet"><div><span style="font-size: 16px;">Crossovers between ADTM and its moving average are its main trading signals: a crossover above may indicate a buying opportunity, while a crossover below may indicate a selling opportunity.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuspcdxRecQ2tbFVYvrYW19of" data-list="bullet"><div><span style="font-size: 16px;">The classic ADTM settings use a 23-day summation period and an 8-day signal moving average, with the indicator generally used on daily charts and higher timeframes.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusk86ifHlrZZcaDRYJsWugJd" data-list="bullet"><div><span style="font-size: 16px;">MEXC users can combine ADTM with price-volume analysis, support and resistance levels, and build a more comprehensive trading approach.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxus5I80t5XEzImFWgASVQDqsg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusvoEO0ga7yvrS20ue1BtSpf"><strong>1. What Is the ADTM Indicator?</strong></h2><div class="ace-line ace-line old-record-id-doxusMZXs8uNpxtuY0ih1liVpXg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusPS0ZLZkoo4CE5jRzW3bm6c"><span style="font-size: 16px;">The Adaptive Dynamic Trading Money Flow Index (ADTM) is a technical indicator used to analyze momentum and potential reversals. It compares upward and downward price movements relative to opening prices to assess the balance of buying and selling momentum. By considering changes in opening prices and subsequent price movements, it expresses this balance within a fixed range of −1 to +1.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuslkNfrqhL9JKwIutAOtSF6b"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMO31dmsvYYN805cc24PJvc"><span style="font-size: 16px;">Unlike oscillators that rely primarily on closing prices, ADTM focuses on the opening price relative to the previous trading day's opening price, as well as the day's high and low. This approach can help traders examine intraday changes in price momentum and identify potential weakening in buying or selling pressure.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQLbs4ZjBtwYx9jADVr8lwd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusoeAq6jtJ4eHkxMXVVIrfEe"><strong>2. How to Interpret ADTM Trading Signals</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusmH5SIBgu12oUYxrnOu39eg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusDlv5DasTUYXStr365mq6bd"><span style="font-size: 16px;"><strong>Moving average crossovers:</strong> When ADTM crosses above its moving average, it forms a <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-golden-cross-and-death-cross-signals-in-trading-458446716142076928">golden cross</a>, which may indicate a buying opportunity. When it crosses below its moving average, it forms a death cross, which may indicate a selling opportunity.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxussluDwm2YitSoykoxOyQYhe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8HrTc1eqYovRMegJdJeUve"><span style="font-size: 16px;"><strong>High-risk zone:</strong> A reading above 0.5 falls within what is conventionally called the high-risk zone. It suggests strong upward momentum that may leave prices vulnerable to a pullback. Traders may consider taking profits or reducing exposure rather than chasing rising prices.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusSHKMp5apRFgibIpqAQ5BHc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus5jHr8ool8LjVQlgdH3Dkn9"><span style="font-size: 16px;"><strong>Low-risk zone:</strong> A reading below −0.5 falls within what is conventionally called the low-risk zone. It suggests strong downward momentum that may be approaching exhaustion. Traders may watch for signs that prices are stabilizing or reversing before considering gradual entries; the zone label does not mean that buying is inherently low risk.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus1wlTHzmmubgCZ23ZaWutKd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusnqutqzRLITUfj0fkEeKInb"><span style="font-size: 16px;"><strong>Zero-line signals:</strong> The zero line separates positive and negative readings. Values above zero indicate stronger buying momentum, while values below zero indicate stronger selling momentum. Crossings around zero may suggest a shift in that balance.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusR1NbGPsGMvdq4zq6IzBSWe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusOFxwviDiak7FbuaoyNOePf"><span style="font-size: 16px;">In practice, beginners can consider these signals together. For example, a golden cross in the low-risk zone may provide a stronger potential buying signal than a crossover alone. A death cross in the high-risk zone may provide a stronger potential selling signal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuspfda8IoU7Ht6zihg4RDoVg"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"117877e4-5da3-4d69-a549-1ac271e2983e","height":1412,"width":2938,"currHeight":1412,"currWidth":2938,"natrualHeight":1412,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FPbcObGX7cocZh8xYZ50u2Khlspc%2F%3Fpreview_type%3D16","file_token":"PbcObGX7cocZh8xYZ50u2Khlspc","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgj0jHpTWJ0UI8iTuRX9OjKe"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261023112402981bL9cEJb9fzNeEI.png" data-single-block="true" data-snapshot="eyJ0eXBlIjoiaW1hZ2UiLCJwYXJlbnRfaWQiOiJKdm5BZGpFRWlvMU9kRHg2djVodTR4RVNzc2YiLCJjb21tZW50cyI6W10sInJldmlzaW9ucyI6W10sImxvY2tlZCI6ZmFsc2UsImhpZGRlbiI6ZmFsc2UsImF1dGhvciI6Ijc2MDMyMTcwNjc1MzMxNDM0NzYiLCJhbGlnbiI6IiIsImltYWdlIjp7InRva2VuIjoiUGJjT2JHWDdjb2NaaDh4WVo1MHUyS2hsc3BjIiwibWltZVR5cGUiOiJpbWFnZS9qcGVnIiwic2l6ZSI6MSwic2NhbGUiOjEsIndpZHRoIjoyOTM4LCJoZWlnaHQiOjE0MTIsIm5hbWUiOiJpbWFnZS5wbmciLCJjcm9wIjpbMCwwLDAsMF0sInJvdGF0aW9uIjowLCJjYXB0aW9uIjp7InRleHQiOnsiYXBvb2wiOnsibmV4dE51bSI6MCwibnVtVG9BdHRyaWIiOm51bGx9LCJpbml0aWFsQXR0cmlidXRlZFRleHRzIjp7ImF0dHJpYnMiOm51bGwsInRleHQiOm51bGx9fX19LCJhcmVhX2NvbW1lbnRzIjpudWxsfQ==" data-suite="eyJmaWxlVG9rZW4iOiJQYmNPYkdYN2NvY1poOHhZWjUwdTJLaGxzcGMiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdqMGpIcFRXSjBVSThpVHVSWDlPaktlIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9QYmNPYkdYN2NvY1poOHhZWjUwdTJLaGxzcGMvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/PbcObGX7cocZh8xYZ50u2Khlspc/?mount_node_token=doxlgj0jHpTWJ0UI8iTuRX9OjKe&mount_point=docx_image" data-width="2938" data-height="1412" data-lark-image-uri="drivetoken://PbcObGX7cocZh8xYZ50u2Khlspc" data-lark-image-width="2938" data-lark-image-height="1412" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusupIcsGOhegaKO46L1vtmkG"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus7cIclbSQlFWsI3UB1sX9pb"><strong>3. Practical Tips for Using ADTM on MEXC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswmbPMuGNUZtVxqta4J5Fwh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuseDjQTb2ZLrjJUw3ITYE6dh"><span style="font-size: 16px;">ADTM can be applied across markets, including U.S. stocks, cryptocurrencies, commodity futures, and forex. Consider the following principles when using it:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8VOhFAkPqcIFwR3KWT8ipF"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxust1XBxMMSDEhORbxT14Fg29"><span style="font-size: 16px;">1) Prioritize daily charts and higher timeframes to help filter out intraday market noise during consolidation.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFGbJr7AKMGSXRq3VyORMVc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuscgPSwyjocA1ylvo4fiso7g"><span style="font-size: 16px;">2) When using shorter timeframes, such as 1-hour or 4-hour charts, consider the broader trend on higher timeframes.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgyR49BmI2dGjEK7jCi1gae"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswRt9yEXt5GmmgkxEDVpAVe"><span style="font-size: 16px;">3) Assess crossovers alongside the indicator's position within its reference zones, rather than chasing upward moves in the high-risk zone.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus36lZ18RbWWzbFzd8PF0MZc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusSSToUrNU2AZ6dznvzaV6Ic"><span style="font-size: 16px;">4) Combine indicator signals with price and volume analysis, key support and resistance levels, and disciplined money management.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusRjG8TScPtmgq7dXHCrJaTh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6GqvoxWVAwTimdLmLl6m7e"><span style="font-size: 16px;">The charting tools available for U.S. stocks on <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a> allow users to examine price structure and cross-check it against indicator signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusTtlxeRl9b70tguJF1dOSte"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusVcU5XA6LmRJWTaklxxqGmh"><span style="font-size: 16px;">*BTN-<strong>Trade U.S. Stocks</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">https://www.mexc.com/trade-stocks</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus9SxceGbzCFDKLCHD4FnbXb"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"e7fc81bf-2cae-4f62-90de-ce8f8d628cec","height":1414,"width":2938,"currHeight":1414,"currWidth":2938,"natrualHeight":1414,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FJj5dbR6xAof0cpx6JXQuWtG2s7g%2F%3Fpreview_type%3D16","file_token":"Jj5dbR6xAof0cpx6JXQuWtG2s7g","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgePclrhnWRw7nCXTQL5Hwfg"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F202610231123568063Um7cZEfWoW43y.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJKajVkYlI2eEFvZjBjcHg2SlhRdVd0RzJzN2ciLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdlUGNscmhuV1J3N25DWFRRTDVId2ZnIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9KajVkYlI2eEFvZjBjcHg2SlhRdVd0RzJzN2cvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Jj5dbR6xAof0cpx6JXQuWtG2s7g/?mount_node_token=doxlgePclrhnWRw7nCXTQL5Hwfg&mount_point=docx_image" data-width="2938" data-height="1414" data-lark-image-uri="drivetoken://Jj5dbR6xAof0cpx6JXQuWtG2s7g" data-lark-image-width="2938" data-lark-image-height="1414" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusn1Bh3lcH5fBgv2J06skCte"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusME5quIkZXI1RMPNUGpWdeh"><strong>4. Advantages and Limitations of ADTM</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdAWULTjLujaYKAoJatAMRc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusDbmt909q7i0WWp47DfXeMb"><span style="font-size: 16px;">Advantages of ADTM: Its opening-price-based approach helps traders assess intraday momentum and identify potential exhaustion in buying or selling pressure. Its moving average crossovers and defined upper and lower reference zones provide a clear framework that can be accessible to beginners.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusRtNS1HDNgkzYRkzbqnF70g"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZL3TB3aH6j6neoibEMAdwg"><span style="font-size: 16px;">Limitations of ADTM: No technical indicator can predict market movements with complete accuracy. During strong directional trends, readings can remain in the high-risk or low-risk zones for extended periods, and crossovers may reverse repeatedly. MEXC encourages users to incorporate ADTM into a broader trading system and apply appropriate position sizing and risk management.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusAPE5Eng5F2xMu3w8J4jfgc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusgJhNyfP9LUXgSonVTbwCrb"><strong>5. ADTM Indicator FAQ</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusRAH6aSSTt0yaoP1Jn5OSQe"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusCoddStaSAbDpqo7arxpggd"><span style="font-size: 16px;">5.1 What is the ADTM indicator?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus15B4KRQJdZz4ORxZGy2vtC"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusz3ESiqg4Bo5eav80IVZxih"><span style="font-size: 16px;">ADTM, also known as the Adaptive Dynamic Trading Money Flow Index, compares upward and downward price movements relative to opening prices to assess buying and selling momentum. Its readings range from −1 to +1.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuspQQxSO4H6cstZ0NH4QWz1c"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusj93wEDr4oyap7lcSMbm2Jb"><span style="font-size: 16px;">5.2 How do I read ADTM trading signals?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZ6eYgRnzF5RoPuDkmHnJGe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiN5ELpYD6JL90TPqjc2Rqc"><span style="font-size: 16px;">A crossover above the moving average may indicate a buying opportunity, while a crossover below may indicate a selling opportunity. Readings below −0.5 fall within the conventional low-risk zone, where traders may watch for potential buying opportunities. Readings above 0.5 fall within the high-risk zone, where traders should be alert to potential pullbacks.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusoNs4HEeSFohjwo8iUlxBwP"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusEo9XFLCs81nXbqHuSbN6Vg"><span style="font-size: 16px;">5.3 How does ADTM differ from the AD indicator?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJSD0ju9s5Ttlp71ZL6gDnc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYASQFP9eyg2ubKcru4cYTj"><span style="font-size: 16px;">The Accumulation/Distribution (AD) line combines volume with the closing price's position within the day's price range. ADTM instead uses price movements relative to opening prices and changes from the previous day's opening price, focusing on buying and selling momentum after the market opens.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusRxRxUK40JekDJpnNmCliog"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusgea2E41ROJqHV8HHdcDzHb"><span style="font-size: 16px;">5.4 What are the best ADTM settings?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxustlAtw7xHQkbgkxGTRI6IKh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjDkIxBiJXpmtKerSw3gNpe"><span style="font-size: 16px;">The classic default settings use a 23-day summation period and an 8-day signal moving average. Beginners can start with these settings and adjust them to suit their trading timeframe as they become more familiar with the indicator.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusrOGUpezC7etuE6FX7klFLg"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus93anq7ClyyInOMcGzXkHzb"><span style="font-size: 16px;">5.5 What does ADT mean in time references? Is it related to ADTM?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusuMxCJVVwZOYiLuIVO13VVc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHKxkWfBb30GQWQFZ4YqlAd"><span style="font-size: 16px;">In time references, ADT usually stands for Atlantic Daylight Time. It is a time zone abbreviation and is unrelated to the ADTM trading indicator.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusEhc9SgEw5C2KI43MwDJxag"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusmlAghVjlSeOLKrbsPqXaIe"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusriCuxDsxqscgLtDXVhK4qW" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-price-oscillator-priceosc-in-u-s-stock-trading-488101266297817088" style="font-size: 16px;">How to Use the Price Oscillator (PRICEOSC) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuscxvna0JPmNH3GlLLAeKRpb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-ddi-in-u-s-stock-trading-487191703893661696" data-lark-is-custom="true" style="font-size: 16px;">How to Use DDI in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusUqSkhHtoCSOJqHNex0jWNS" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-mike-indicator-in-u-s-stock-trading-485036480714594304" data-lark-is-custom="true" style="font-size: 16px;">How to Use the MIKE Indicator in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusuvLrfPC1hheAT1AHHyHlqb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-tradingview-on-mexc-466637656862259200" data-lark-is-custom="true" style="font-size: 16px;">How to Use TradingView on MEXC</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuskaMogjjIzPetreDdAX50ge" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-fibonacci-retracement-in-trading-462148325116231680" data-lark-is-custom="true" style="font-size: 16px;">How to Use Fibonacci Retracement in Trading</a></div></li></ul><div class="ace-line ace-line old-record-id-DWcDd4mE1oO8z1xrTFYuDmsLsZb"><br></div></div>

<div data-page-id="GeOydGVuWowaVpxvTa6uIw1EsCc" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxusmgzBHiFlOzHQasUwSLGYzf"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusKACoCyxMMf61kw32mIG2cd" data-list="bullet"><div><span style="font-size: 16px;">The Price Oscillator is a moving average-based momentum indicator that measures the difference between two moving averages with different periods.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusPbjAUAsjCKnkLd34bwz4Zd" data-list="bullet"><div><span style="font-size: 16px;">It expresses the difference between a short-term and a long-term moving average as a percentage, making it easier to compare assets.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusMz0s4xoZtlX6MYaME6i0wd" data-list="bullet"><div><span style="font-size: 16px;">Its two main applications are identifying market trend direction and buy and sell signals.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusc7Vi0dSI0gcErtHVCLOhAg" data-list="bullet"><div><span style="font-size: 16px;">Zero-line crossovers, divergences, and threshold-based assessments are the three most commonly used methods for identifying signals.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuspgsmhQdGyOoljoYV0Ik02e" data-list="bullet"><div><span style="font-size: 16px;">When trading on MEXC, users can combine the Price Oscillator with tools such as the Relative Strength Index to improve the accuracy of their decisions.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusOGhzJybNS91ZmpQLty2qre"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusPWw5oxULwiQ5JvYmLjotqf"><strong>1. What Is the Price Oscillator?</strong></h2><div class="ace-line ace-line old-record-id-doxusxIjUTFKCEXZcDj3OtYOr8b"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXzgeTO5SMQGq1RTuaDcEKf"><span style="font-size: 16px;">The Price Oscillator (PRICEOSC), also known as the Percentage Price Oscillator (PPO), is a moving average-based momentum indicator that measures the difference between two moving averages with different periods. Technical analyst Gerald Appel laid the theoretical foundation for this type of indicator in the late 1970s. He also created the well-known <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-macd-indicator-in-trading-426304203100942336">Moving Average Convergence Divergence</a> (MACD) indicator.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusI8AP23zoDMl7CBnrEFpLlb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXQ3WaAPJn9uemRi8gSRXzb"><span style="font-size: 16px;">The Price Oscillator compares the short-term and long-term moving averages of closing prices, with the difference fluctuating around zero. When the short-term moving average is above the long-term moving average, the indicator is positive, reflecting upward momentum. When the short-term moving average is below the long-term moving average, the indicator is negative, reflecting downward momentum.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusT7OOD7SBNEBLfgUchpXu7c"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuspfucQRHp6gY6oQ6ShH7xDh"><span style="font-size: 16px;">The Price Oscillator is widely used in stock, forex, and crypto markets. Users can also add this type of oscillator to U.S. stock charts on MEXC to help assess price trends and identify entry and exit opportunities.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusw4Cv6ZZbDTloHj2HxPQzmh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusbscIrWPLW6otGGD0INMi1f"><strong>2. How to Calculate the Price Oscillator</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqA3dgdwTRYJQqlrVILzEIg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfzdYymmn7uPaxRAXOD0IWO"><span style="font-size: 16px;">The Price Oscillator calculation involves three steps. First, subtract the long-term moving average of closing prices from the short-term moving average. Next, divide the difference by the short-term moving average of closing prices. Finally, multiply the result by 100. The formula is:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjvBYYmqMbX6Xytnb0aaTGL"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqYGw3YnprRXClzcTVbjRCb"><strong style="font-size: 16px;">Price Oscillator = (Short-term moving average − Long-term moving average) / Short-term moving average × 100</strong></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus2JWuDFkFFVxeVtg13ulNFg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIkfQkUOy5wQlH7ksRZjjjh"><span style="font-size: 16px;">Note that the classic Percentage Price Oscillator (PPO) uses the long-term moving average as the denominator:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8ZYCGeIV0PK1NVE4AVYZAe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusocXBmoieJZFAka7HhDPHpe"><strong style="font-size: 16px;">PPO = (12-day exponential moving average − 26-day exponential moving average) / 26-day exponential moving average × 100</strong></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusj6MxStDQ6jn8WVlBSHvl2c"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJkpI7OkZFIkdb16JDBlnMb"><span style="font-size: 16px;">Although the denominators differ, both calculations follow the same underlying principle: expressing the difference between moving averages as a relative percentage so that the indicator's value is not affected by the asset's price level. In practice, the default periods are typically 12 and 26, with a 9-day <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-exponential-moving-average-indicator-in-trading-416907527621799936">exponential moving average</a> used as the signal line. Short-term traders can shorten the periods to increase sensitivity, while swing traders can use longer periods to filter market noise.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus0Rvv3fFx5Lq7vjdi4dkn0c"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusA68gNn82fW5Qe0mrAQbZoe"><strong>3. Two Main Uses of the Price Oscillator</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusg08dcKDgx1Vn4lVIQaKR8f"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuspQ5yJy5OrRrqho77qTpZDi"><span style="font-size: 16px;">3.1 Identifying market trends</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus3AzFFUF3aPB3xWVywmoL6b"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfIH9d4OVozdZekNBqA0XPq"><span style="font-size: 16px;">When the short-term moving average is above the long-term moving average and the Price Oscillator is positive, the market is likely in an uptrend. When the short-term moving average is below the long-term moving average and the indicator is negative, the market is likely in a downtrend. The farther the reading is from zero, the stronger the momentum of the current trend.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxushVhsMYyFvycS9oLpH2bOJb"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusuya7KHHUUydeeKpG63n7Fd"><span style="font-size: 16px;">3.2 Identifying trading signals</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHDuLW9TqdIbEnE0kWg0q9g"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuskReGXyuKaebHMpRqpjGuib"><span style="font-size: 16px;">A move above zero may be a buy signal, while a move below zero may be a sell signal. Traders can also set specific thresholds. When the Price Oscillator reaches these levels, the market may be in overbought or oversold conditions, helping traders identify potential entry or exit opportunities.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusUET2ZLQ8qwCRpizqYnbpwg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus7vjyrOv1szuAk16q0hwfTh"><strong>4. How the Price Oscillator Differs From MACD</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusBrR3Al8jfXoCGlcdfG2q6d"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdCQ7D0Z32C02hobbeEWSxh"><span style="font-size: 16px;">The MACD indicator measures the absolute difference between two moving averages. Its magnitude is affected by the asset's price level: higher-priced assets naturally tend to have larger MACD readings, while lower-priced assets tend to have smaller readings. As a result, MACD values cannot be directly compared across different assets.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusK6UvXTmJ6ygVWGemd3z53y"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusomAwONQMGx3tIc1mRJ1T8f"><span style="font-size: 16px;">The Price Oscillator converts this difference into a percentage, removing the constraint of differing price levels and allowing traders to compare momentum and volatility across assets in different price ranges. This is particularly useful for MEXC users who monitor multiple trading pairs.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus9rUUW6X6DP38FAnECIFrPg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusHgVTDUUfKL3mUgjeGoe0Vg"><strong>5. How to Add the Price Oscillator to U.S. Stock Charts on MEXC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGVKYk4jcDi2PUuHVhBYXae"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusxXUBIPOFkhShZ2MpyjAAAc"><span style="font-size: 16px;"><a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>'s <a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">U.S. stock</a> trading interface allows users to add and configure the Price Oscillator. Follow these simple steps:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus2LokrXpObURKKWIhTUiIyZ"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvf2ujw5JKJtdOVNHrptOVd"><span style="font-size: 16px;">1) Log in to your account, go to the U.S. stock trading page, and open the price chart for your chosen stock.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusmbpLlrKPDYfheuzjKgpUEc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjEKFTLkX0nmTtue5l9xfjb"><span style="font-size: 16px;">2) Click the indicator button above the chart, then search for and select PRICEOSC in the indicator list.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuszMcOk6BEMeIAtdI5Msj90c"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbYBzJAn6mRAl2ooAhtdTiz"><span style="font-size: 16px;">3) Once added, adjust the period parameters to suit your trading preferences. The system will automatically plot the indicator on the chart. Beginners are advised to start with the default settings on a daily chart and customize them after becoming familiar with the indicator.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIq5pzbKBoCyV33YhGHuKoe"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusuFjD3WQ8AEa6wooaeTfIpc"><span style="font-size: 16px;">*BTN-<strong>Trade U.S. Stocks</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">https://www.mexc.com/trade-stocks</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbyzKff1YkMXrvAu7eCJlTe"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"7bd18ee8-54d5-4772-9d5c-85322dc21ae4","height":1426,"width":2938,"currHeight":1426,"currWidth":2938,"natrualHeight":1426,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FNnL4bixT4oL8hxxwIjZu5WvNs4e%2F%3Fpreview_type%3D16","file_token":"NnL4bixT4oL8hxxwIjZu5WvNs4e","image_type":"image/png","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgjU6S5ik8seNap8e9TULs8c"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261020160035808XTwcIyEZo6CyjK.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJObkw0Yml4VDRvTDhoeHh3SWpadTVXdk5zNGUiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdqVTZTNWlrOHNlTmFwOGU5VFVMczhjIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9Obkw0Yml4VDRvTDhoeHh3SWpadTVXdk5zNGUvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/NnL4bixT4oL8hxxwIjZu5WvNs4e/?mount_node_token=doxlgjU6S5ik8seNap8e9TULs8c&mount_point=docx_image" data-width="2938" data-height="1426" data-lark-image-uri="drivetoken://NnL4bixT4oL8hxxwIjZu5WvNs4e" data-lark-image-width="2938" data-lark-image-height="1426" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIkvPMi1eVrmj3jtSildQBc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusL4HP0M4zPdA8htUJICmqBf"><strong>6. Price Oscillator Trading Strategies and Risk Management Tips</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusphD3e11aDzRzZCWze0qOUd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIiMlMSBRvuAXr9EaRBA8Yf"><span style="font-size: 16px;"><strong>1) Confirm the trend direction.</strong> Use a longer-term moving average to assess the broader trend. Trading in the direction of the trend can improve the win rate.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusn3TYTuYcjDEBcGzSQIlXYc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusyRGLWoIepV3JM8QPm8Kc5c"><span style="font-size: 16px;"><strong>2) Wait for signal confirmation.</strong> After a zero-line crossover, use <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-moving-average-of-volume-in-trading-421863713722995712">trading volume</a> or the Relative Strength Index for additional confirmation. For example, a buy signal that occurs when the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-relative-strength-index-rsi-in-trading-425570029981283328">Relative Strength Index</a> is in oversold territory is more reliable.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgWvQxyhNKSEEfqw8PizSig"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQPKQe6nL0we0eIwmKaqYhd"><span style="font-size: 16px;"><strong>3) Watch for divergence.</strong> If the price reaches a new high but the indicator does not, upward momentum is weakening and the market may reverse. The opposite also applies.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxushE23WzBeLajqxjijzzpbFh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusG2nFekdVKaqGuepxAc7nvc"><span style="font-size: 16px;"><strong>4) Set stop-loss levels consistently.</strong> For long positions, a stop-loss can be placed below the recent swing low. For short positions, it can be placed above the recent swing high to limit the loss on each trade.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQgXjTd30IuM4MzuSqgmIFd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusoTlGOX4oRgLt0Jtk8Mxkhe"><strong>7. Limitations of the Price Oscillator</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHeGt0SFpvsR1fJ9Mui7xSg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjpYABiIUJZN3MuTu3McNyA"><span style="font-size: 16px;">The Price Oscillator is not an all-purpose tool:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZm1d0AkZqCi4KAuTl1q51d"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgCH1BjRLZzEHDkXjFncCH5"><span style="font-size: 16px;">1) Because it is calculated from <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-simple-moving-average-sma-in-trading-456004357219401728">moving averages</a>, it inherently lags price movements.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus3CR2CzgoU77qeyzms5VHBe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuszID34rPgnw6suSGzpL5Jce"><span style="font-size: 16px;">2) In sideways markets, the Price Oscillator may repeatedly cross the zero line, producing frequent signals driven by market noise.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus3yO8W8LEdEirfN1CgPqc7d"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus0U0JRVKTyRemREPnlRmSYg"><span style="font-size: 16px;">3) The Price Oscillator theoretically has no upper limit, making it less effective as a standalone tool for identifying overbought or oversold conditions than the Relative Strength Index or the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-stochastic-oscillator-in-trading-427169948248728576">Stochastic Oscillator</a>.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusghewU1Gi4hPbuCut3bFFpe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZuxKKWOq9evDOKSF8a4HId"><span style="font-size: 16px;">When trading on MEXC, users are advised to combine it with tools such as trendlines and support and resistance levels, while maintaining disciplined position sizing.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGoHBIPQ4nUBfeZJE0UKIDA"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"20a005e1-6ba6-4121-a4ba-c9774661c586","height":1416,"width":2938,"currHeight":1416,"currWidth":2938,"natrualHeight":1416,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FJ6TtblJRpo0UjDxpvZyuyLdJsLe%2F%3Fpreview_type%3D16","file_token":"J6TtblJRpo0UjDxpvZyuyLdJsLe","image_type":"image/png","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgX1YfO7bgDsaqQvm6Zdhnuo"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261020160035820Vuw1P9CCxZxYzP.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJKNlR0YmxKUnBvMFVqRHhwdlp5dXlMZEpzTGUiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdYMVlmTzdiZ0RzYXFRdm02WmRobnVvIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9KNlR0YmxKUnBvMFVqRHhwdlp5dXlMZEpzTGUvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/J6TtblJRpo0UjDxpvZyuyLdJsLe/?mount_node_token=doxlgX1YfO7bgDsaqQvm6Zdhnuo&mount_point=docx_image" data-width="2938" data-height="1416" data-lark-image-uri="drivetoken://J6TtblJRpo0UjDxpvZyuyLdJsLe" data-lark-image-width="2938" data-lark-image-height="1416" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgDLeLd9XQokpytAk01Pr5f"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxustBPxCy4q1H44nLQ7E3zb1d"><strong>8. Price Oscillator (PRICEOSC) FAQ</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusTtgPx2xJeJT03AUuwXW42f"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusnJAhpxk0t2huwkjSX0Hc7b"><span style="font-size: 16px;">8.1 What is the Percentage Price Oscillator (PRICEOSC)?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus9fYPm64MU9BHDISCAPOfDd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswBiw2Ff6SO1XUCFwlZqwNb"><span style="font-size: 16px;">The Percentage Price Oscillator is the percentage-based form of the Price Oscillator. It divides the difference between two moving averages by a reference moving average and multiplies the result by 100, allowing direct comparisons of momentum across assets with different price levels.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiyXtiOc0g1nYObu6DUXlyc"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusQl7OZPClG90uFAq1FKj3od"><span style="font-size: 16px;">8.2 How does Price Oscillator differ from MACD?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusrJZNQKhI2ytJLOscCCRjgh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusW74hsyGweVqcHjEzYlO3Zc"><span style="font-size: 16px;">MACD expresses the difference between moving averages as an absolute value and is affected by the asset's price level. PPO expresses the difference as a percentage, allowing comparisons across assets regardless of price level and providing greater consistency in long-term analysis.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuseFbBTX6SMSPjnlBEUB0Jlf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuse3pZKiHGK8rCSMmd1qqcfb"><span style="font-size: 16px;">8.3 What trading strategies use the Price Oscillator?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdQSLqXqkQtdPzrJhYd5Z3e"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusrgfA27HCBlV7srhdJl5psf"><span style="font-size: 16px;">The main approaches are zero-line crossover strategies (buying on a crossover above zero and selling on a crossover below zero), threshold strategies (using specific readings to identify overbought or oversold conditions), and divergence strategies (anticipating reversals when price and indicator movements diverge).</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxussTNhzObx6Zt18Rf5xHEb3t"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusA3khReSExFaZrR9XNNoq2c"><span style="font-size: 16px;">8.4 What is an oscillator in trading?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusENXgIM3NYOtoy2XZy8qi5f"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGhgv1rp4zPlJYN2USP3hcl"><span style="font-size: 16px;">An oscillator is a type of technical indicator that fluctuates around a centerline or within a fixed range. Oscillators are used to measure market momentum, identify overbought and oversold conditions, and anticipate trend reversals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusUD9CdFzFk5EG6hl9lHabgd"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusESWKwf50rOVZrDCwcmd2bG"><span style="font-size: 16px;">8.5 How do oscillators differ from other technical indicators?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusS1wTb2Wutny0RVkuIg2ARf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusduswSC5wOBv8c5rd3zpcWe"><span style="font-size: 16px;">Technical indicators include trend indicators, volume indicators, and other types, and are commonly overlaid on price charts. Oscillators are a subset of technical indicators, generally displayed in a separate pane and fluctuating around a specific value.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusDYTsM7bXaTGqHnjwsXuFZe"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusR05G2mLGYvn1NJXOgrxnjh"><span style="font-size: 16px;">8.6 How can I use the Price Oscillator on MEXC?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbY789Uktp8Mm4ouiFBtwCh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusStzRuhk78oNvVtB0rRGZ5g"><span style="font-size: 16px;">Add the Price Oscillator from the technical indicator list on MEXC's U.S. stock charts. After setting the fast and slow periods, use zero-line crossovers, thresholds, and divergences to help inform trading decisions.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusajhrNqivseovIy2er6B8Ae"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusXYETWMybCqqEopRiBgNuVd"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusagoXuZR9LN7NlFvAj8Gl8d" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-ddi-in-u-s-stock-trading-487191703893661696" style="font-size: 16px;">How to Use DDI in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusS67otN6nh03UvbmRfHoUfh" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-mike-indicator-in-u-s-stock-trading-485036480714594304" data-lark-is-custom="true" style="font-size: 16px;">How to Use the MIKE Indicator in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusCIXiUUCIXdvhJTN4THEwje" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-keltner-channels-kc-in-u-s-stock-trading-484971308880844800" data-lark-is-custom="true" style="font-size: 16px;">How to Use Keltner Channels (KC) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusgMnsC1BHH11qCnDu5FIvYg" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-ene-in-u-s-stock-trading-484214441154009088" data-lark-is-custom="true" style="font-size: 16px;">How to Use ENE in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus5voRQu1kwZW4h0AmacTtRh" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-tradingview-on-mexc-466637656862259200" data-lark-is-custom="true" style="font-size: 16px;">How to Use TradingView on MEXC</a></div></li></ul></div>

<div data-page-id="JSmgdQJh1otqPmxwAb8uigYlsnf" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxuslrthpSVezhvPee85IPSfxf"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusMTfq58iaVZgx7xN1MeQMJc" data-list="bullet"><div><span style="font-size: 16px;">Direction Standard Deviation Index or "Directional Deviation Index" (DDI) compares upward and downward price movements relative to the previous trading day to help identify trend direction.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusuKaTmf4imdCrPHy898UYvg" data-list="bullet"><div><span style="font-size: 16px;">DDI is calculated using changes in price highs and lows, upward directional movement, and downward directional movement.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusA7ebm0VwK8pW4bhhcDykNd" data-list="bullet"><div><span style="font-size: 16px;">A move in DDI from negative to positive may indicate a potential buying opportunity, while a move from positive to negative may indicate a potential selling opportunity.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusfOgzijru8Qt5U0LsUXB1Ib" data-list="bullet"><div><span style="font-size: 16px;">DDI can be combined with moving averages and relative strength indicators to help assess U.S. stock trading setups.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusJZtAQW4Uvi9Pm2jodY3GPd" data-list="bullet"><div><span style="font-size: 16px;">MEXC users can also apply the same DDI analysis framework to crypto trading.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxus3h9l1o2tFpNaUmiqTJI5dI"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusdRvht19kUuZ49LM2vQoKLc"><strong>1. What Is DDI?</strong></h2><div class="ace-line ace-line old-record-id-doxusvafsyfpV1eIG6zuBPrUQ10"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMA57AGydAvZzgvwyVLt3Gc"><span style="font-size: 16px;">DDI is a trend indicator that compares the proportions of upward and downward stock price movements relative to the previous trading day over a given period. Moving averages are then used to smooth the indicator. Rather than focusing on potential overbought or oversold conditions, DDI emphasizes the balance between upward and downward price movements, helping traders assess whether prices are trending higher or lower.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusNFZM9FBr5UlEcJH3zhpF9c"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusWu7NmtvCzkudIg87xyYGKb"><span style="font-size: 16px;">In the U.S. stock market, individual stocks can experience substantial volatility and pronounced trends. DDI offers a visual way to assess the direction and relative dominance of upward or downward price movements, making it a useful tool for beginners learning to recognize trends.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6ut8GOiQioBEqgmSiY1rZb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusqQmmicrZwFJtxVp1bzQ2ff"><strong>2. How to Use DDI in U.S. Stock Trading</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusa9wwGcGBl85rYkPhKg6dBg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJkm8skoxTIiK0fVnTik4Mc"><span style="font-size: 16px;">DDI can help identify potential shifts in the balance between upward and downward price movements. In practice, traders can focus on the following signals and considerations:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusODXpONBh93zqCgoZS6yjCQ"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusFPAUjy8PAGWlxQcXzGouAg"><span style="font-size: 16px;">2.1 Potential buy signals</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusKX2s4Uo3BC14aH9UfJ6zdb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusEjrNao9Dk0BN0iGeo3mf8b"><span style="font-size: 16px;"><strong>1) DDI turns from negative to positive:</strong> When DDI crosses above zero, upward directional movement outweighs downward directional movement over the calculation period. This may indicate strengthening upward momentum.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusE9REzQpBH6ULTmQXMfk0lg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusxl7LahtLCRLuWnO5uPEWAc"><span style="font-size: 16px;"><strong>2) DDI crosses above its weighted average (ADDI):</strong> When DDI crosses above ADDI to form a <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-golden-cross-and-death-cross-signals-in-trading-458446716142076928">golden cross</a>, it may indicate that short-term momentum is shifting upward. Traders may use this as supporting evidence of a potential trend beginning or continuing.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusuzMmPBL54f5GsqDScpj0Wg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuskBeQPHPMpBvdX7W2p9venc"><span style="font-size: 16px;"><strong>3) Assess the strength of the setup:</strong> If both signals occur together while the stock price rises on increasing trading volume, the combination may provide stronger support for a potential buying opportunity.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusW0b3ol410TWIR83Js3u4zf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuse4H9FjwqHxr74TlzlyZ2Jg"><span style="font-size: 16px;">2.2 Potential sell signals</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqQLcpIJoLdTP0Atvd5AdLc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIxg4jV9N3wfX29BaLfRgdg"><span style="font-size: 16px;"><strong>1) DDI turns from positive to negative:</strong> When DDI crosses below zero, downward directional movement outweighs upward directional movement. This may suggest that an existing uptrend is weakening and a downtrend could be developing.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZvQRFgmlH2iwdrrDq8AStg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusc9YCl6RlKEGPSOMp2Iuwmf"><span style="font-size: 16px;"><strong>2) DDI crosses below its weighted average (ADDI):</strong> When DDI crosses below ADDI to form a death cross, it may indicate weakening upward momentum. Traders holding positions may consider reducing their exposure or exiting to reassess the market.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus4jwH76hfvjEazMvUHxaouf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus2aS4K1P7huWmf9d1JF2Idh"><span style="font-size: 16px;"><strong>3) Watch for bearish divergence:</strong> If the stock price reaches a new high but DDI does not, bearish divergence forms. This may warn of a potential trend reversal, prompting traders to assess the risk of a pullback.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJf5zym4d2g4dKYcmLmEvaf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusLd1f2DBJG2z8PcUjsr26Jf"><span style="font-size: 16px;">2.3 Important considerations</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus28ga2nrpz3GGuZAvkiJ19g"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGlGJ4QCK5Lv4VSs8wFX9Ic"><span style="font-size: 16px;"><strong>1) Watch for market noise in sideways markets:</strong> DDI is a momentum-based trend indicator. During consolidation, it may repeatedly cross above and below zero, with frequent crossovers reflecting market noise rather than a sustained trend. Traders may reduce trading frequency and wait for a clearer trend before entering a position.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusKeF95eSh0B78TNFduoBoph"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIWwiyUyb6ZI6w5uSi0idqh"><span style="font-size: 16px;"><strong>2) Use other tools for confirmation:</strong> Consider combining DDI with changes in <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-moving-average-of-volume-in-trading-421863713722995712">trading volume</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-simple-moving-average-sma-in-trading-456004357219401728">moving averages</a>, and <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-bollinger-bands-in-trading-416909030860353536">Bollinger Bands</a> to identify potential support and resistance levels For example, a potential DDI buy signal may carry more weight when the stock price also holds above a key moving average.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjnptqJnYxLiKbrinsXoJ1c"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusVmtEzI3aSfTnQqurcdUzQc"><span style="font-size: 16px;"><strong>3) Adjust parameters to your trading style:</strong> Short-term traders may shorten the calculation period to make the indicator more responsive. Medium- to long-term investors may start with the default settings to help filter short-term market noise and focus on more sustained trends.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHGSGYPHfCwn1o5ngMNMaTc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus0qSSH34vxXTiY1eFwcbDZe"><span style="font-size: 16px;"><strong>4) Apply disciplined risk management:</strong> Any indicator signal can fail. Before entering a trade, define a stop-loss level and limit the proportion of capital allocated to the position to reduce the risk of a large loss from relying on a single signal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusVXOuxOsxHq1VJwbuM6wxxf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusYkg5zLXMBPYKwEc4mjKNGd"><strong>3. How to Add DDI to U.S. Stock Charts on MEXC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusmkvI8oBRtNoAoRtailRuah"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxussR8MzxVrOiShVSS0wCSl1e"><span style="font-size: 16px;"><a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>'s U.S. stock trading interface allows you to add and configure DDI. Follow these steps:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuslsIxMULNQaQ0cWKrCZuKbe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdpK8qMAbkEcKYr0LiZzGGg"><span style="font-size: 16px;">1) Log in to your account, go to the U.S. stock trading page, and open the price chart for your chosen stock.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusaz8FFundOUULziXFVQcBVg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQiG1KMDaRtQwy8Ifa7S5fc"><span style="font-size: 16px;">2) Click the indicator button above the chart. In the Indicator Loading panel, search for and select DDI.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusU5C4hNRyiurtPcBqGyf5Tx"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQUOJpyd6rdbccUCfOowfHg"><span style="font-size: 16px;">3) Once added, adjust the period parameters to suit your trading approach. The indicator lines will appear automatically on the chart. Beginners can start with the default settings on a daily chart, then customize them after becoming familiar with the indicator.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvpSHXgZmnzz9gwnMaQAuGg"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusspc4sjwkyf3aelu9ny4uKb"><span style="font-size: 16px;">*BTN-<strong>Trade U.S. Stocks</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">https://www.mexc.com/trade-stocks</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus9YEO7QOepd9DlpAQaljr1f"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"9216cc68-224c-42a8-8222-bd38d1878343","height":1416,"width":2938,"currHeight":1416,"currWidth":2938,"natrualHeight":1416,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FJy88b5jYRoT9VPx4smxuSaOMsCe%2F%3Fpreview_type%3D16","file_token":"Jy88b5jYRoT9VPx4smxuSaOMsCe","image_type":"image/png","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgfk8G1NoVrQ1emcs8qTOF7c"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F202610191035575209B9Vw5E6Ynwk4g.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJKeTg4YjVqWVJvVDlWUHg0c214dVNhT01zQ2UiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdmazhHMU5vVnJRMWVtY3M4cVRPRjdjIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9KeTg4YjVqWVJvVDlWUHg0c214dVNhT01zQ2UvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Jy88b5jYRoT9VPx4smxuSaOMsCe/?mount_node_token=doxlgfk8G1NoVrQ1emcs8qTOF7c&mount_point=docx_image" data-width="2938" data-height="1416" data-lark-image-uri="drivetoken://Jy88b5jYRoT9VPx4smxuSaOMsCe" data-lark-image-width="2938" data-lark-image-height="1416" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHYasGkmucQZZ0Xz14EOMre"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusUXyduWG2MJYb2EaGGDiz1d"><strong>4. DDI FAQ</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusy04FnzrfbIaz4ersZk9Bpf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusi6J732Deh3mkwHLycxwNwf"><span style="font-size: 16px;">4.1 What is the DDI indicator</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusq8MtdkkIYePJBBg5BG4xQe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6jQrXbVD7TNCrZdrBZ1F0g"><span style="font-size: 16px;">DDI is a trend indicator that compares the proportions of upward and downward stock price movements. Together with its smoothed averages, it helps traders assess trend direction and the balance between upward and downward movement.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXC81DOcwd4DCQXtTAw9kGg"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxushYvAfONdeoHHHAA6Qj7FHd"><span style="font-size: 16px;">4.2 How does DDI differ from standard deviation?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusU6daF8AVwsykF5qGkNozgb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusP2vRgkKP2uPMHRsqDK7jde"><span style="font-size: 16px;">Standard deviation measures how widely values are dispersed around their mean. DDI instead compares upward and downward directional movement using changes in price highs and lows. Despite its name, DDI is not a measure of dispersion around a mean or a standardized deviation score.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusLDRK2x4IZ37oCBGUlUZmQg"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuserOKFkneNz0WfmVjN3AMUg"><span style="font-size: 16px;">4.3 How is DDI calculated?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusG1DMWXCQxaaytaa77X1Ysh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusOvgtaraefHTzBtfYu7Ostc"><span style="font-size: 16px;">DDI = (U - D) / (U + D), where U and D are the sums of upward and downward directional movement over the selected period. For each period, the movement magnitude is the larger of the absolute change in the high and the absolute change in the low. It is assigned to upward movement if the sum of the high and low rises from the previous period, or downward movement if that sum falls; both are zero if it is unchanged.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus4AD6636Sg6TnNwvATzZmHf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxustjmjpQi6uGKsubV825JYtb"><span style="font-size: 16px;">This is equivalent to subtracting the downward movement proportion (DIF) from the upward movement proportion (DIZ): DDI = DIZ - DIF. It is not the formula "(measured value - target mean) / standard deviation." The ratio requires a nonzero total movement.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuselh8i98MoSa5O9UCEL0pbe"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusOMHLjEeNKmckDXmYmDfLId"><span style="font-size: 16px;">4.4 Is a DDI reading of 0.5 good? Is 2 high?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8KjXFe6j1uiQ4vxWFaiofh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuskDPpnKLL4c6UsFpj2VOxpd"><span style="font-size: 16px;">Under the unscaled formula above, DDI ranges from -1 to +1 when defined. A reading of 0.5 indicates that upward directional movement outweighs downward movement; it is not inherently "good" or a guaranteed buy signal. A reading of 2 falls outside this range. Interpret DDI in the context of the asset, its recent price action, and the chart's calculation and display conventions, rather than applying standard deviation or quality-control thresholds.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusCGrBVkfhuFnIgfN7m4Nwfb"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusHrQgGplXn0eagRhkaRQYWc"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusvfvNqBbK6TD4FTlgBn67Zg" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-mike-indicator-in-u-s-stock-trading-485036480714594304" style="font-size: 16px;">How to Use the MIKE Indicator in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusRACRAGQsem3kbfVDQRKlCd" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-keltner-channels-kc-in-u-s-stock-trading-484971308880844800" data-lark-is-custom="true" style="font-size: 16px;">How to Use Keltner Channels (KC) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusvqaxLCSTaLTrcQ4RVhSkjb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-ene-in-u-s-stock-trading-484214441154009088" data-lark-is-custom="true" style="font-size: 16px;">How to Use ENE in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuskxTVg17hacu3gwlK1gRtcd" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-cdp-indicator-in-u-s-stock-trading-484204459650013184" data-lark-is-custom="true" style="font-size: 16px;">How to Use the CDP Indicator in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusuqF3YEDyce58z423P4tgwe" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-bbi-bollinger-bands-bbiboll-in-u-s-stock-trading-482722189126751232" data-lark-is-custom="true" style="font-size: 16px;">How to Use BBI Bollinger Bands (BBIBOLL) in U.S. Stock Trading</a></div></li></ul></div>

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<h2 class="heading-2 ace-line old-record-id-doxuspjx0NOnFB6shv7s2KIKoVc"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusvPPg1npHI4wB2cWosFftbe" data-list="bullet"><div><span style="font-size: 16px;">The Oscillator (OSC) is a momentum-based technical analysis tool that measures the speed of price changes and helps identify overbought and oversold conditions.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusDKRTXvQkIKjMw6In0JseUX" data-list="bullet"><div><span style="font-size: 16px;">The OSC uses a centerline to distinguish bullish from bearish conditions: readings above the centerline indicate bullish conditions, while readings below it indicate bearish conditions.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusx0N4L0yTexBhmRUfgJRnLe" data-list="bullet"><div><span style="font-size: 16px;">Divergence is one of the most useful oscillator signals and can provide an early warning of a potential trend reversal.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus50PzHQKoXJDn52Ga7pDcuw" data-list="bullet"><div><span style="font-size: 16px;">Oscillators are suited to range-bound markets, while trend indicators are suited to directional markets. Combining the two can improve analysis.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusIFjYLMYcCBy08DVF5bZ2Td" data-list="bullet"><div><span style="font-size: 16px;">MEXC supports the OSC for U.S. stock trading, allowing users to apply the strategies in this guide directly through its charting tools.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMnTyTT4U91aPTiJoOelAah"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusEDL6AG1EW84FjWuub49wog"><strong>1. What Is an Oscillator? </strong></h2><div class="ace-line ace-line old-record-id-doxusIO9MozLEAJ4ezSV15Rizde"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqfzEWozamMpvZWAT1IV8Pg"><span style="font-size: 16px;">Oscillators are among the most widely used tools in technical analysis. They measure the speed and magnitude of changes in an asset's price, which is why they are also known as momentum indicators. An oscillator typically consists of upper and lower boundaries and an indicator line that fluctuates between them. Traders assess the line's position to determine whether the market is overbought or oversold.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQ3uJL4MSpuF9HbIlRlBllg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHbqQGRk7Q5QS2mWhV5aikc"><span style="font-size: 16px;">The Oscillator (OSC) is calculated as the ratio of the current day's closing price to the average closing price over a specified number of preceding trading days, typically expressed as a percentage. The OSC has a centerline of 100. A reading above 100 means the price is above its recent average, indicating bullish conditions. A reading below 100 means the price is below its recent average, indicating bearish conditions.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGf2rDY2QN9mtXQe8aSRIed"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusnh4la0V3XHpk8ioI0Xavng"><span style="font-size: 16px;">When trading U.S. stocks on <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>, you can add the OSC directly to the price chart and combine it with other analysis tools to develop a trading strategy.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusPqkogbEN4NKWkRtinPkFDg"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusMHdf1opiBDTsv8MYWzvrvg"><span style="font-size: 16px;">*BTN-<strong>Trade U.S. Stocks</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">https://www.mexc.com/trade-stocks</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus7Luveuy8VGqwnSKfLaOCDd"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"2462a15f-8e54-45ac-9e68-b1f81174d50e","height":1412,"width":2938,"currHeight":1412,"currWidth":2938,"natrualHeight":1412,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FTemSbI5GwohRHCxVUFCumvr8swf%2F%3Fpreview_type%3D16","file_token":"TemSbI5GwohRHCxVUFCumvr8swf","image_type":"image/png","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgEhPkHeByaaujXwVbRIXAPf"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261112103417356PIf2k8ZrhClXSr.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJUZW1TYkk1R3dvaFJIQ3hWVUZDdW12cjhzd2YiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdFaFBrSGVCeWFhdWpYd1ZiUklYQVBmIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9UZW1TYkk1R3dvaFJIQ3hWVUZDdW12cjhzd2YvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/TemSbI5GwohRHCxVUFCumvr8swf/?mount_node_token=doxlgEhPkHeByaaujXwVbRIXAPf&mount_point=docx_image" data-width="2938" data-height="1412" data-lark-image-uri="drivetoken://TemSbI5GwohRHCxVUFCumvr8swf" data-lark-image-width="2938" data-lark-image-height="1412" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgrVTOTw0s1oviowSCylHqd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus1wBrLRPwCnpLHWk3PhQvSg"><strong>2. How Oscillators Work</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusPAc2xIuYF1HYM5JMVzxY5g"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusCyi7zN1pW9Iqu0bU3dmHHg"><span style="font-size: 16px;">Oscillators apply mathematical formulas to price data to generate a series of values that fluctuate within a fixed or relatively fixed range. Structurally, they fall into two main categories:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusKW34d52O1MW8l6aij1Rgfh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusKZyllIMW9cscIGsF6yHLrf"><span style="font-size: 16px;"><strong>Centered oscillators:</strong> These fluctuate above and below a centerline. For example, the OSC fluctuates around 100, while the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-macd-indicator-in-trading-426304203100942336">Moving Average Convergence Divergence (MACD)</a> fluctuates around zero. These indicators help assess the direction and strength of momentum. Readings above the centerline indicate that bullish momentum is dominant, while readings below it indicate that bearish momentum is dominant.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusKuQVI39Yi0Dy6xtA5HU9ld"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJmjEOpTCDS19CfXLnXsV8e"><span style="font-size: 16px;"><strong>Banded oscillators:</strong> These fluctuate between defined upper and lower boundaries. For example, the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-relative-strength-index-rsi-in-trading-425570029981283328">Relative Strength Index (RSI)</a> ranges from 0 to 100, with 70 typically marking the overbought threshold and 30 marking the oversold threshold. These indicators help identify extreme price conditions.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusr1lciVON9Ee8hGnLAyB2Qe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusUkrxjHXPPEbBEtf4DMh8Je"><span style="font-size: 16px;">The OSC's overbought and oversold thresholds can vary depending on the characteristics of each stock. Use historical data to adjust the parameters rather than applying fixed values mechanically.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusf1sJJn7brTOXHBRpq6N64b"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusUPlU2dzK6hgO0FM7OsOMuc"><strong>3. Common Oscillators</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusNeIlCxfL49i2jvJOqtZDIh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIiOCZ4KnQyHQnAtFW50sPb"><span style="font-size: 16px;">In addition to the OSC, the following widely used oscillators are common in U.S. stock trading and are all supported by MEXC's charting tools:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxust5fmgLhfq7oTp5NaLjNAtd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusm4MFlzr7J1ABtIj11n99Gc"><span style="font-size: 16px;"><strong>Relative Strength Index (RSI):</strong> Compares average gains with average losses over a given period to assess the balance between buying and selling pressure. Readings above 70 indicate overbought conditions, while readings below 30 indicate oversold conditions. It is best suited to range-bound markets.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuslGmH7S1VvEfiVUWtOvuOvh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxussB0GtMHuj7ocBS4Lc0kHlc"><span style="font-size: 16px;"><strong>Moving Average Convergence Divergence (MACD):</strong> Based on the difference between a fast and a slow exponential moving average, the MACD combines trend-following and momentum analysis. It helps identify trend changes and potential entry and exit points.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHWRnX3K5vhRv3pTL2aHd6g"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXUAH9cjt4vgrxmP0YaGnHg"><span style="font-size: 16px;"><strong><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-stochastic-oscillator-in-trading-427169948248728576">Stochastic Oscillator (KDJ)</a></strong>: Generates signals by comparing the latest closing price with the highest and lowest prices over the past 14 trading days. Readings above 80 indicate overbought conditions, while readings below 20 indicate oversold conditions. It is particularly sensitive to short-term reversals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuse5TZwbSppQXL4jBDSeg93f"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusHuXDZ9G0uGAduENXODbVJb"><strong>4. How to Use the OSC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxuspyfZGuQ5DDQ723cxfWyTdd"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusSyHKz9Xv8F9Nys3PyAqgqe"><span style="font-size: 16px;">4.1 Use centerline crossovers to identify bullish and bearish momentum</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqKQqvUXqcqx3rla9bqLiab"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFgGGo444OMEEGOvYjCTSRb"><span style="font-size: 16px;">When the OSC crosses above the 100 centerline, it indicates a shift from bearish to bullish momentum and may be interpreted as a buy signal. When it crosses below the centerline, it indicates a shift from bullish to bearish momentum and may be interpreted as a sell signal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus0yy3zyrF1SFL6bU2rBJw0g"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXiZKqD8Km5eemg2jDF8isf"><span style="font-size: 16px;">A crossover above the OSC's own moving average may also present a potential buying opportunity, while a crossover below it may present a potential selling opportunity. Centerline crossovers are straightforward to interpret, but they can be affected by considerable market noise in sideways markets. Use other tools to confirm these signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus0vV9BC71BfROsEXsdye6Rb"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"0fb26527-c015-4996-9180-44a41a0591dc","height":1406,"width":2938,"currHeight":1406,"currWidth":2938,"natrualHeight":1406,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FPYQ6bumJLoBYp6xRZjaufqA5sP1%2F%3Fpreview_type%3D16","file_token":"PYQ6bumJLoBYp6xRZjaufqA5sP1","image_type":"image/png","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgHfDbdWD6PV67SJfm5rZS5f"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261112103417850Ubffa85Bjecpkc.png" data-single-block="true" data-snapshot="eyJ0eXBlIjoiaW1hZ2UiLCJwYXJlbnRfaWQiOiJPTk1VZG14ajRvdk03RHhTVkZidWFiSE5zYmgiLCJjb21tZW50cyI6W10sInJldmlzaW9ucyI6W10sImxvY2tlZCI6ZmFsc2UsImhpZGRlbiI6ZmFsc2UsImF1dGhvciI6Ijc2MDMyMTcwNjc1MzMxNDM0NzYiLCJhaV9leHRyYSI6eyJnZW5fc291cmNlcyI6WzFdfSwiYWxpZ24iOiIiLCJpbWFnZSI6eyJ0b2tlbiI6IlBZUTZidW1KTG9CWXA2eFJaamF1ZnFBNXNQMSIsIm1pbWVUeXBlIjoiaW1hZ2UvcG5nIiwic2l6ZSI6MSwic2NhbGUiOjEsIndpZHRoIjoyOTM4LCJoZWlnaHQiOjE0MDYsIm5hbWUiOiJpbWFnZS5wbmciLCJjcm9wIjpbMCwwLDAsMF0sInJvdGF0aW9uIjowLCJjYXB0aW9uIjp7InRleHQiOnsiYXBvb2wiOnsibmV4dE51bSI6MCwibnVtVG9BdHRyaWIiOm51bGx9LCJpbml0aWFsQXR0cmlidXRlZFRleHRzIjp7ImF0dHJpYnMiOm51bGwsInRleHQiOm51bGx9fX19LCJhcmVhX2NvbW1lbnRzIjpudWxsfQ==" data-suite="eyJmaWxlVG9rZW4iOiJQWVE2YnVtSkxvQllwNnhSWmphdWZxQTVzUDEiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdIZkRiZFdENlBWNjdTSmZtNXJaUzVmIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9QWVE2YnVtSkxvQllwNnhSWmphdWZxQTVzUDEvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/PYQ6bumJLoBYp6xRZjaufqA5sP1/?mount_node_token=doxlgHfDbdWD6PV67SJfm5rZS5f&mount_point=docx_image" data-width="2938" data-height="1406" data-lark-image-uri="drivetoken://PYQ6bumJLoBYp6xRZjaufqA5sP1" data-lark-image-width="2938" data-lark-image-height="1406" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGaxo4khSpbUc9XL45II7Qf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusmXfZ2F8vl2YziyCP3yJ4Zf"><span style="font-size: 16px;">4.2 Identify overbought and oversold zones</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusa38rW5uJGMZa9q79V7o73c"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusVeeoyikwsZWK0HxXzWrufg"><span style="font-size: 16px;">When the OSC reaches the upper end of its historical range, it suggests that short-term gains may be overextended and a pullback could follow. When it reaches the lower end of its historical range, it suggests that short-term losses may be excessive and a rebound could occur.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusx9hnA5PWCvYxgn1ZKLKNHd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxustImGOQpWV5tCQaOMxwQzwc"><span style="font-size: 16px;">For beginners, it is important to remember that overbought does not mean sell immediately, and oversold does not mean buy immediately. During a strong directional trend, the indicator can remain at extreme levels for an extended period. In these conditions, focus on trading with the trend: look for potential buying opportunities from oversold signals in an uptrend and potential selling opportunities from overbought signals in a downtrend.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusemnLjqVrRUptBeDSNo3cdb"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusBqJ7fn9tZZRiw7S1mPPu0b"><span style="font-size: 16px;">4.3 Use divergence to anticipate potential reversals</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus3nlU4oXK5SBPSg8lwi8zAe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus5YMMeQvAJIeZPE4Hk3Wqkd"><span style="font-size: 16px;">Bullish divergence occurs when the stock price makes a lower low while the OSC makes a higher low. This suggests that downward momentum is weakening and the trend may reverse from downward to upward.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus4R5zhYEXeMUrGtQZfkk1Ah"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuscNt2CztRaSTlcVPjdmZM2d"><span style="font-size: 16px;">Bearish divergence occurs when the stock price makes a higher high while the OSC makes a lower high. This suggests that upward momentum is weakening and the trend may reverse from upward to downward.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusUaYpOmHTbVYAZNe0V4HIGd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXk5ReFAAw9akOn5k2dqPrf"><span style="font-size: 16px;">When the OSC diverges from the stock price at high or low levels, stay alert to the possibility of a price reversal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusb15UNK9EuuhmoYdgaJJ1nc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusigmzwtnPjJhrbTuuhr1C6g"><strong>5. Combining Indicators for U.S. Stock Trading on MEXC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxuskmOueVNZsU8N1Ch1UOwDCb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusPlqCzzUWYOFYg3GUnrVEc0"><span style="font-size: 16px;">No single indicator is immune to misinterpretation. Beginners trading U.S. stocks on MEXC should use multiple tools to confirm signals:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbZEQDYFujka4YapikTmMpe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuse2IxBiq33cjwHHhlhvYb3d"><span style="font-size: 16px;">1) Use moving averages to confirm the broader trend, the OSC or RSI to identify potential entry and exit points, and <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-bollinger-bands-in-trading-416909030860353536">Bollinger Bands</a> to assess volatility.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvE2SiOvlyDfql6jA03RkJb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswL69Buux9QwAfhtKl6zXCg"><span style="font-size: 16px;">2) A buy signal has the strongest confirmation when an oversold reading, bullish divergence, and a moving average <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-golden-cross-and-death-cross-signals-in-trading-458446716142076928">golden cross</a> occur together.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusef1MG1XjqvI2UaSGxWQHDc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusNyqbjuhkgpcMoQQpufPmjf"><span style="font-size: 16px;">3) No indicator can guarantee 100% accuracy. Disciplined position sizing and stop-loss management remain essential to trading.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGCi5irNgyBgOOWCgLtcpjc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusogrWsD19NPab2NEjYaH0Ye"><strong>6. Oscillators vs. Moving Averages</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZKfPinWzIfPvrxOjbxYbCg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusG99c3LFV06j9uDzmZ90SYb"><span style="font-size: 16px;">Oscillators and <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-simple-moving-average-sma-in-trading-456004357219401728">moving averages</a> serve complementary purposes. Moving averages are lagging, trend-following indicators that help confirm the direction of a trend and support holding positions while that trend continues, but their signals often lag behind price movements. Oscillators are leading indicators that can provide early indications of potential entry and exit opportunities, although they are more susceptible to market noise in trending markets.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusR8WrDHRa0JQOKn4YSBRdih"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusglnfd3fRDMUmLnUYkWjFJf"><span style="font-size: 16px;">In short, oscillators are suited to range-bound markets, while moving averages are suited to directional markets. Combining the two can strengthen trading analysis. For example, when the OSC generates a buy signal while the stock price is above its 50-day moving average, the bullish signal has stronger confirmation.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusLRxnxUnbHZdB6aQCeD9zWr"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusxvKieAI2vr3bNJrnJWtI8b"><strong>7. Oscillator FAQs</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXgeqcI0RgNUlNSTf5N8o1e"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusXGoEtOeWIzZXk9TpgR1CFe"><span style="font-size: 16px;">7.1 What is an oscillator in trading?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusw9yPRexdnWMhPDWLoKFHzf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusCsvS4eGkX4sFUCD8rKFQ4e"><span style="font-size: 16px;">An oscillator is a technical analysis tool that measures the speed of changes in an asset's price. Its values fluctuate within a fixed range or around a centerline to help identify overbought and oversold conditions, momentum strength, and potential trend reversal points.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusPokFhXApcD5oENQDpylaKe"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuske07ATnOXACggFJAVWh8Lg"><span style="font-size: 16px;">7.2 How do you use oscillators in trading?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusv1BreDF9kOtuay7oVPH0kg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusKlSCa0yQd7hwTIpXFMbHSh"><span style="font-size: 16px;">There are three main approaches: use centerline crossovers to assess bullish or bearish momentum, identify overbought and oversold zones to look for potential reversals, and examine divergence between price and the indicator to anticipate possible trend changes. Use trend indicators alongside oscillators to confirm signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxushvTTKWRUDXg8oveO9wwCwc"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusPMmAGRTpWzAzpVnssIGpcN"><span style="font-size: 16px;">7.3 Which oscillator is best for trading?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMv1u4AnrhVmmDUCmhIYDdg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuseQm16rx7uutTsWhRwQtBZE"><span style="font-size: 16px;">No single indicator is best in every situation. The RSI is suited to identifying overbought and oversold conditions, the MACD to spotting trend changes, and the stochastic oscillator to short-term trading. Beginners should focus on mastering two or three complementary indicators rather than trying to use too many.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuslPIe0rjZPuhvILJr5Bkshb"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusRd4GH9QAFzm1RLJmCfoWkc"><span style="font-size: 16px;">7.4 What are oscillators mainly used for?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxuskv9VM8nfx7QsFshWDY7A8c"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusboAb78HiBj0Ch5g6GvQOxh"><span style="font-size: 16px;">Oscillators help identify overbought and oversold conditions, assess the direction and strength of momentum, flag potential trend reversals through divergence, and confirm signals from other technical analysis tools.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjGKrTf5Fk5fn9ssOZKWHId"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusilKvLYWu9E3UzIR8wDFVOf"><span style="font-size: 16px;">7.5 What is the 3-5-7 rule in trading?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfvTPx610RqATOt1I86M5Db"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusM8jRfkMzinnhvLhhdjCgHq"><span style="font-size: 16px;">The 3-5-7 rule is a risk management principle that limits risk on a single trade to 3% of account funds, total risk exposure in a single market to 5%, and overall account risk to 7%. Used alongside oscillators, it can help manage trading risk.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusS8ilaC7nKngJbgJFzNiJeh"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusBx2U63jjDAp9LKtvECYfYf"><span style="font-size: 16px;">7.6 Can I use the OSC to analyze U.S. stocks on MEXC?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus5eh518zEfcYToC96d273ig"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiPrKzJJEZD4FBFsteNxeJf"><span style="font-size: 16px;">Yes. MEXC supports the OSC and a range of other popular technical indicators for <a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">U.S. stock trading</a>. You can add them through the charting tools and customize their parameters to suit individual stocks.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusopdNoQdkEJ22He1VqQ1gve"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusRYW8tHjdRT5fckmHTBDnze"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusxxv78m6Ej3rXa7DlViyf1e" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-srdm-indicator-in-u-s-stock-trading-504270091590480896" style="font-size: 16px;">How to Use the SRDM Indicator in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusTPudkllumyxHxaBuUIrQqe" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-volume-relative-strength-index-vrsi-in-u-s-stock-trading-500535643296412672" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Volume Relative Strength Index (VRSI) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuspegnVOmbcQMRXpQMs0aySd" data-list="bullet"><div><a href="https://www.mexc.com/support/article/what-is-a-shooting-star-candlestick-a-beginner-s-guide-to-identifying-and-trading-the-pattern-504349101808858112" data-lark-is-custom="true" style="font-size: 16px;">What Is a Shooting Star Candlestick? A Beginner's Guide to Identifying and Trading the Pattern</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuspSUnC8SWZbjh4BvwK33s2g" data-list="bullet"><div><a href="https://www.mexc.com/support/article/what-is-a-hanging-man-candlestick-pattern-a-beginner-s-guide-to-identification-and-trading-499820299313384448" data-lark-is-custom="true" style="font-size: 16px;">What Is a Hanging Man Candlestick Pattern? A Beginner's Guide to Identification and Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusTOxKFF15p2FQMAvBnuhJdg" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-tradingview-on-mexc-466637656862259200" data-lark-is-custom="true" style="font-size: 16px;">How to Use TradingView on MEXC</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusx18YfW9Y8sbBP6F7m0ISTb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-support-and-resistance-levels-in-trading-462151469032291328" data-lark-is-custom="true" style="font-size: 16px;">How to Use Support and Resistance Levels in Trading</a></div></li></ul>

<div data-page-id="IuxbdE2ZNoSgelxpk2eu7xuOsob" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxusE6R32QvpZ6KOjA5UDAVi1g"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxus7Ai84NLOHHE3CWvlfNvPyh" data-list="bullet"><div><span style="font-size: 16px;">SRDM is a price-based trend indicator that compares upward and downward momentum.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusrmmcWjUGz78s476ZAFg2fg" data-list="bullet"><div><span style="font-size: 16px;">SRDM uses changes in highs and lows to calculate upward and downward movement, then compares their moving averages to derive a ratio.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus56qqx3lWKtaivsRwXpgUEb" data-list="bullet"><div><span style="font-size: 16px;">Positive and negative SRDM readings can help traders assess the relative strength of upward and downward momentum.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusxQtecB9R0JRd3eE69INK8g" data-list="bullet"><div><span style="font-size: 16px;">Crossovers between the SRDM line and its smoothed line, ASRDM, may provide reference signals for buying or reducing a position.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusScRfBz0Y8wGZKJu7k3ALsf" data-list="bullet"><div><span style="font-size: 16px;">MEXC supports SRDM for U.S. stock market analysis, helping users make informed trading decisions.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxuszMPTZH9xkcWrc3bJNZFeEf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusE3T0xPylgs1Y5esdAJcHTf"><strong>1. What Is the SRDM Indicator?</strong></h2><div class="ace-line ace-line old-record-id-doxusmNxps5VivaH2d1XyDqZGJc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusuLIAhEsclAd5g9IUFVvDZv"><span style="font-size: 16px;">SRDM is a technical analysis indicator based on price movements. It uses historical highs and lows to compare upward and downward momentum over a given period, helping traders assess the direction and strength of a price trend.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqtGdZS1b8NGhwvEUQCxfYe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusBMKeJ4hPBg8hNI74Ru8X7d"><span style="font-size: 16px;">For beginners in U.S. stock trading, SRDM turns complex price movements into an easy-to-read value. By observing whether the reading is positive or negative and how it changes, users can form a basic view of the market trend. When trading U.S. stocks on <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>, users can use SRDM to support their analysis of an asset's price movements.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuseR2bwg6qVAgJTTdDJ8vZjc"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"fb329e14-66c6-434a-b927-656841e4f910","height":1408,"width":2938,"currHeight":1408,"currWidth":2938,"natrualHeight":1408,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FJy8eb3zwwoYImWxFB2zuCAqjsTb%2F%3Fpreview_type%3D16","file_token":"Jy8eb3zwwoYImWxFB2zuCAqjsTb","image_type":"image/png","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlglrgM5SslusFkMiWsZAFbhh"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261111105220435VCeDThpD0sWR9n.png" data-single-block="true" data-snapshot="eyJ0eXBlIjoiaW1hZ2UiLCJwYXJlbnRfaWQiOiJJdXhiZEUyWk5vU2dlbHhwazJldTd4dU9zb2IiLCJjb21tZW50cyI6W10sInJldmlzaW9ucyI6W10sImxvY2tlZCI6ZmFsc2UsImhpZGRlbiI6ZmFsc2UsImF1dGhvciI6Ijc2MDMyMTcwNjc1MzMxNDM0NzYiLCJhaV9leHRyYSI6eyJnZW5fc291cmNlcyI6WzFdfSwiYWxpZ24iOiIiLCJpbWFnZSI6eyJ0b2tlbiI6Ikp5OGViM3p3d29ZSW1XeEZCMnp1Q0FxanNUYiIsIm1pbWVUeXBlIjoiaW1hZ2UvcG5nIiwic2l6ZSI6MSwic2NhbGUiOjEsIndpZHRoIjoyOTM4LCJoZWlnaHQiOjE0MDgsIm5hbWUiOiJpbWFnZS5wbmciLCJjcm9wIjpbMCwwLDAsMF0sInJvdGF0aW9uIjowLCJjYXB0aW9uIjp7InRleHQiOnsiYXBvb2wiOnsibmV4dE51bSI6MCwibnVtVG9BdHRyaWIiOm51bGx9LCJpbml0aWFsQXR0cmlidXRlZFRleHRzIjp7ImF0dHJpYnMiOm51bGwsInRleHQiOm51bGx9fX19LCJhcmVhX2NvbW1lbnRzIjpudWxsfQ==" data-suite="eyJmaWxlVG9rZW4iOiJKeThlYjN6d3dvWUltV3hGQjJ6dUNBcWpzVGIiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdscmdNNVNzbHVzRmtNaVdzWkFGYmhoIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9KeThlYjN6d3dvWUltV3hGQjJ6dUNBcWpzVGIvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Jy8eb3zwwoYImWxFB2zuCAqjsTb/?mount_node_token=doxlglrgM5SslusFkMiWsZAFbhh&mount_point=docx_image" data-width="2938" data-height="1408" data-lark-image-uri="drivetoken://Jy8eb3zwwoYImWxFB2zuCAqjsTb" data-lark-image-width="2938" data-lark-image-height="1408" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusG5UaKvieHRUHthdVOoCLWb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusxE6FtWXzUAraePFOKw2h4e"><strong>2. How to Calculate the SRDM Indicator</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusq7sExjmob5XeLQ1DqfANRh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusd6VwaQ5whNDbprmizT8Zgh"><span style="font-size: 16px;">The SRDM calculation has four steps:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusBN1tAfL7Y0VhSi6Po5jrhd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJvEWLFiaA5I2BwaxHQEEub"><span style="font-size: 16px;">1) Calculate upward movement. If the sum of the current period's high and low is less than or equal to the previous period's sum, upward movement is zero. Otherwise, use the larger of the absolute change in the high and the absolute change in the low.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusenf4L06PbXtxBv8COpTXPd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZqMOSu3etu5ANF9UhcPONF"><span style="font-size: 16px;">2) Calculate downward movement. If the sum of the current period's high and low is greater than or equal to the previous period's sum, downward movement is zero. Otherwise, use the larger of the two absolute changes.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusEvzhwdp9LxFNbcA9eS1bie"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus3aCV7Vt7lIQdtk0v4KW03g"><span style="font-size: 16px;">3) Calculate a 10-day moving average of upward movement and a separate 10-day moving average of downward movement.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusmCsMbai5Afeuufq1C4aALb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqeiX901zcig76qeP0oxX9b"><span style="font-size: 16px;">4) Compare the two averages. If average upward movement is greater, SRDM = (Average upward movement − Average downward movement) / Average upward movement. If average downward movement is greater, SRDM = (Average upward movement − Average downward movement) / Average downward movement. If the averages are equal, SRDM = 0. Finally, calculate a moving average of SRDM over a specified period, such as 30-day, to obtain ASRDM, the signal line</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusAVNOzqLcHPeBvBUgt2fVug"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus6J0VHcrGEshbPK1Q7T2Ucc"><strong>3. How to Interpret SRDM in U.S. Stock Trading</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus4C5TxaXCwaPWWNki9nqovd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusD17VQffBtEsxAhxl65f5bg"><span style="font-size: 16px;">There are three main aspects to consider when interpreting SRDM:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8XtgcWaOspniRcIaJdpHgf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfyAkschU3HTZ0YxZ01kxAb"><span style="font-size: 16px;">1) Check whether the reading is positive or negative. A positive value may indicate that upward momentum is stronger, suggesting a bullish bias. A negative value may indicate that downward momentum is stronger, suggesting a bearish bias.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvDZ9jTHfphdtZVQNvDf45X"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQljBAzeWj6RmxEUZt2lozf"><span style="font-size: 16px;">2) Assess the smoothed line. A higher positive ASRDM reading may suggest a stronger upward trend, while a more negative reading may suggest a stronger downward trend.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusM8snSulDpNh0IT0oB1GpJg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus5Bk8RGsxlE3qhK2jRY95Ad"><span style="font-size: 16px;">3) Watch for crossovers and changes in direction. When SRDM crosses above ASRDM, it may indicate a potential buying opportunity. Conversely, a crossover below ASRDM may suggest weakening momentum and a potential opportunity to reduce or exit a position.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusL5L8HgejDIRmH76gOF9Kab"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswzlqXmKeO4tia88504IIec"><span style="font-size: 16px;">Beginners should remember that any individual technical indicator can lag price movements and be affected by market noise, leading to inaccurate interpretations. When <a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">trading U.S. stocks</a> on MEXC, combine SRDM with other tools, such as <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-moving-average-of-volume-in-trading-421863713722995712">volume</a> and <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-moving-average-indicators-in-trading-416905955663768576">moving averages</a>, and apply appropriate position sizing and risk management.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus7c3nQGTH8drob19bd3PHWb"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusoaMQG8jeldNbSVqhd3SStg"><span style="font-size: 16px;">*BTN-<strong>Trade U.S. Stocks</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">https://www.mexc.com/trade-stocks</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusC7fqzoldBHlbZB1ze4rw9b"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"e3df3d0d-cecc-47c6-82f2-ee899b1ded9b","height":1416,"width":2938,"currHeight":1416,"currWidth":2938,"natrualHeight":1416,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FIr6NbFj0loKaCqxmUvouGNsFsLb%2F%3Fpreview_type%3D16","file_token":"Ir6NbFj0loKaCqxmUvouGNsFsLb","image_type":"image/png","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgbZvgC4uNrw48TXynK3lcWc"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261111105225995KPRdJwWql6oYAA.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJJcjZOYkZqMGxvS2FDcXhtVXZvdUdOc0ZzTGIiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdiWnZnQzR1TnJ3NDhUWHluSzNsY1djIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9JcjZOYkZqMGxvS2FDcXhtVXZvdUdOc0ZzTGIvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Ir6NbFj0loKaCqxmUvouGNsFsLb/?mount_node_token=doxlgbZvgC4uNrw48TXynK3lcWc&mount_point=docx_image" data-width="2938" data-height="1416" data-lark-image-uri="drivetoken://Ir6NbFj0loKaCqxmUvouGNsFsLb" data-lark-image-width="2938" data-lark-image-height="1416" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusq7IFaNtHT7OgXEz2znc6R9"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxuscXubzMI2gYigaOQ2lK34gh"><strong>4. SRDM FAQs</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus9kkezbdmOol6tNQS09kWIc"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus7gixRE9LS355RHEqZ4uwoe"><span style="font-size: 16px;">4.1 What does SRDM mean in trading?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiFRKzw0icPYaUMxHuXwVlf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus35zvigyS8PtcmxPRwpqi9b"><span style="font-size: 16px;">In trading, SRDM refers to a price-based technical indicator that compares the strength of upward and downward momentum.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusSnrsovGuGkUbd7GfKL1FMn"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusgIGu7I67NY2poXJwbo5a9g"><span style="font-size: 16px;">4.2 How does SRDM indicate potential buying and selling opportunities?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusSJV9gtLDSJ88XZiGGwvLZf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusDdj4bYNDXt9aHnFgvP4PXf"><span style="font-size: 16px;">When SRDM crosses above ASRDM, it may signal strengthening upward momentum. When SRDM crosses below ASRDM, it may signal weakening momentum or increasing downward pressure.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6MBbvB7x7jCAxq4QR0ZBPL"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusUrg4GoyEDOmym8SDs894dg"><span style="font-size: 16px;">4.3 What settings are commonly used for SRDM?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus7Rj3xqghEtBazSg0RqEnpg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus43xID38MQu13lL8rq7G9of"><span style="font-size: 16px;">The upward and downward movement averages commonly use 10 periods, while ASRDM commonly uses 30 periods.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusxMyTWjKXKDvADaH0xJqbtc"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusX7ZHQB0KiPE429EGpMtKwb"><span style="font-size: 16px;">4.4 How does SRDM differ from other directional indicators?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxuscSE3AKfG83zqsTmbpOZpEc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiavJaAb1p1Fagdn1lJlVKT"><span style="font-size: 16px;">SRDM uses a ratio to quantify the relative strength of upward and downward momentum, in addition to helping identify trend direction. Other directional indicators may place different emphasis on direction and strength.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusuY8bW0Flu0PT60gObGpWsg"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusJxJuIVboEQQnNS2hqNlsYe"><span style="font-size: 16px;">4.5 Can I use SRDM for U.S. stock trading on MEXC?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusAfnjdcpmq5aMjRNdxdXQ0e"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHY88GhD4LGMc9zeo0rwbXf"><span style="font-size: 16px;">Yes. MEXC supports SRDM for U.S. stock market analysis. Users can apply it to assess trends and inform trading decisions.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusxlTwGJJ7BipJ5uLLiPilje"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus0PncUzsy8IwtcauqfwZjlh"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusrn4o9P2VlMKHftPYWxYIBb" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-volume-relative-strength-index-vrsi-in-u-s-stock-trading-500535643296412672" style="font-size: 16px;">How to Use the Volume Relative Strength Index (VRSI) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusGN4i8zflBXO0keCKRQDfTh" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-volume-rate-of-change-vroc-in-u-s-stock-trading-499813728013424640" data-lark-is-custom="true" style="font-size: 16px;">How to Use Volume Rate of Change (VROC) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuskg9gm89Q5elJ6OWLF4Td7x" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-slow-stochastic-oscillator-slowkd-in-u-s-stock-trading-499226348286023680" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Slow Stochastic Oscillator (SLOWKD) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusTu3hI59FTkX92u63Y38IFe" data-list="bullet"><div><a href="https://www.mexc.com/support/article/what-is-a-hanging-man-candlestick-pattern-a-beginner-s-guide-to-identification-and-trading-499820299313384448" data-lark-is-custom="true" style="font-size: 16px;">What Is a Hanging Man Candlestick Pattern? A Beginner's Guide to Identification and Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuskYUBFWJNvajJtqbLMfqLwc" data-list="bullet"><div><a href="https://www.mexc.com/support/article/what-is-a-hammer-candlestick-a-beginner-s-guide-to-identifying-and-trading-the-pattern-498483190094776320" data-lark-is-custom="true" style="font-size: 16px;">What Is a Hammer Candlestick? A Beginner's Guide to Identifying and Trading the Pattern</a></div></li></ul><div class="ace-line ace-line old-record-id-Ew7xdbzUOo3KnHxDQNTu7XvFsHe"><span style="font-size: 16px;"><br></span></div></div>

<div data-page-id="ZuQid7a2Io01USx5OFBuS2bmsSb" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxuskvUbIRz34nC397xqTNr6Ne"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-doxusdYvmYhHHOljUU9Ve7iCfCb" data-list="bullet"><div><span style="font-size: 16px;">The Volume Relative Strength Index combines trading volume and price changes to measure buying and selling pressure, as well as market supply and demand.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxussr7ZT43iuJNznc061junjg" data-list="bullet"><div><span style="font-size: 16px;">VRSI uses 50 as the dividing line between market strength and weakness. Readings above 50 indicate a strong market, while readings below 50 indicate a weak market.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus2G2MifTc89IRhf5vVtKdcf" data-list="bullet"><div><span style="font-size: 16px;">Changes in histogram height and color provide a visual indication of strengthening or weakening trend pressure.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusWZuzUJKjBh8KkwQfpf628d" data-list="bullet"><div><span style="font-size: 16px;">VRSI can be applied to stocks, exchange-traded funds (ETFs), futures, forex, and cryptocurrencies.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuskWopjhFzS7AuB9i2aMVwte" data-list="bullet"><div><span style="font-size: 16px;">Use VRSI alongside other price-based indicators and cross-check signals across multiple timeframes.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8kJhgnYyz1BqAL1DvKkHQd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxuspZMgwdvFUDbuGMMYAgTKRh"><strong>1. What Is the Volume Relative Strength Index?</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMzuYPPYePLi0CEU7v8Mmuf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusazTh65XBn88cA3iS0LBXGe"><span style="font-size: 16px;">The Volume Relative Strength Index (VRSI) is a volume-based technical indicator developed from the traditional <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-relative-strength-index-rsi-in-trading-425570029981283328">Relative Strength Index (RSI)</a>. While traditional RSI is calculated solely from the magnitude of price gains and losses, VRSI incorporates trading volume into its core calculation. It uses four factors, namely the number of up days, the number of down days, the magnitude of volume increases, and the magnitude of volume decreases, to assess volume trends and anticipate supply and demand dynamics as well as buying and selling pressure.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusikqedVPVeQLkS7KCAJxo8g"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus1BnpcSznBbRB0eiPcWX5sb"><strong>2. How to Interpret the Volume Relative Strength Index</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6cpOpoxMLrrQT7POVx6Mbg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusspa60toPVo7XCi8pG7cB6g"><span style="font-size: 16px;">VRSI uses 50 as the dividing line between bullish and bearish conditions. Readings above 50 indicate a strong market, while readings below 50 indicate a weak market. Signals tend to be more accurate when the indicator is above 50. A crossover above this level often suggests that market sentiment is shifting from bearish to bullish, while a crossover below it suggests the opposite.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusEW96BQBJcygOVQUiJVWKLf"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusm6112rUmxNTdRNvipgez2e"><span style="font-size: 16px;">*BTN-<strong>Trade U.S. Stocks</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">https://www.mexc.com/trade-stocks</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusO2ivz8vKWTp2WtVwgbdUPd"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"20b6e975-f5eb-4d29-ab82-f5dd01b078d3","height":1408,"width":2938,"currHeight":1408,"currWidth":2938,"natrualHeight":1408,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FOHQQbfdDZo7KRxxfAAXuLoZ3sOb%2F%3Fpreview_type%3D16","file_token":"OHQQbfdDZo7KRxxfAAXuLoZ3sOb","image_type":"image/png","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlg8Ll0ZWVKwHRWE5xwxFiehh"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261106100635393NHrm5sSIBr7cfA.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJPSFFRYmZkRFpvN0tSeHhmQUFYdUxvWjNzT2IiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGc4TGwwWldWS3dIUldFNXh3eEZpZWhoIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9PSFFRYmZkRFpvN0tSeHhmQUFYdUxvWjNzT2IvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/OHQQbfdDZo7KRxxfAAXuLoZ3sOb/?mount_node_token=doxlg8Ll0ZWVKwHRWE5xwxFiehh&mount_point=docx_image" data-width="2938" data-height="1408" data-lark-image-uri="drivetoken://OHQQbfdDZo7KRxxfAAXuLoZ3sOb" data-lark-image-width="2938" data-lark-image-height="1408" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusoZvfwlHgdyQ4wMoZ6JGSog"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxush8vzUmXLtFuOfFOwUTVeKe"><strong>3. How to Use VRSI Buy and Sell Signals</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus18HiAI1mX94RNDVDOqKmQf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFpNEGsVzBvvO47dHe8Iglh"><span style="font-size: 16px;">1) Classic overbought and oversold signals: A downward turn above 60 is a sell signal, while an upward turn below 40 is a buy signal. Note that sell signals are generally more reliable than buy signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus3lpCRribvwsfHNahBTXAzc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQGfndCxBHgodUuZ7cdeIDc"><span style="font-size: 16px;">2) Comparing lows during consolidation: When the market is trading sideways, successively higher indicator lows suggest that buyers have the upper hand and prices may continue to rise. Successively lower lows, on the other hand, are a sell signal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdHdj5g2kYQRLquWNFms88e"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusv4CEFUU5HycUBva8MxQxSf"><strong>4. Key Considerations When Using VRSI</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMKqazW8F04tsbo13ymRiUq"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqqTwY9O8Y8I5KRca94naDh"><span style="font-size: 16px;">VRSI is a volume-based oscillator and should not be used as the sole basis for trading decisions. In practice, combine it with price-based indicators such as the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-stochastic-oscillator-in-trading-427169948248728576">Stochastic Oscillator</a> and <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-macd-indicator-in-trading-426304203100942336">Moving Average Convergence Divergence (MACD)</a> to assess price direction in the broader market context. It is also advisable to monitor the indicator across multiple timeframes, using longer timeframes to confirm direction and shorter timeframes to identify entry opportunities.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusyLXEfNMJFV7rnPAS7j9NMh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfIFutKGFFe3UrBg8cwNPvh"><span style="font-size: 16px;">When trading on MEXC, you can use candlestick chart tools to combine volume analysis with price analysis. Set stop-loss orders consistently to manage risk on each trade.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusg0y1bl8bNdFlVyKMUvcpUh"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"21f99550-a3c1-4c1c-98de-4a1909a38720","height":1414,"width":2938,"currHeight":1414,"currWidth":2938,"natrualHeight":1414,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FKFXHbfkMhobSiKxfJv7uI6m2shc%2F%3Fpreview_type%3D16","file_token":"KFXHbfkMhobSiKxfJv7uI6m2shc","image_type":"image/png","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgLVKlPIO2x6t5VEdC0X1Qme"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261106100635419liLtAqS7qXUN1B.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJLRlhIYmZrTWhvYlNpS3hmSnY3dUk2bTJzaGMiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdMVktsUElPMng2dDVWRWRDMFgxUW1lIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9LRlhIYmZrTWhvYlNpS3hmSnY3dUk2bTJzaGMvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/KFXHbfkMhobSiKxfJv7uI6m2shc/?mount_node_token=doxlgLVKlPIO2x6t5VEdC0X1Qme&mount_point=docx_image" data-width="2938" data-height="1414" data-lark-image-uri="drivetoken://KFXHbfkMhobSiKxfJv7uI6m2shc" data-lark-image-width="2938" data-lark-image-height="1414" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusnua8EgDHKdPPukE28bMTjg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusR1n745mYvUZnSpxEJ5Dplh"><strong>5. Volume Relative Strength Index FAQ</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus66UIN30ezISZf2lNbteCEe"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus2V2S0GIT0Anu850vMhjF2h"><span style="font-size: 16px;">5.1 What VRSI level indicates a buying opportunity?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusxFNrLlAI01pk5gAlOUC7Gf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHR6FpIsuZUSYNE5pHKJ3Hc"><span style="font-size: 16px;">Generally, an upward turn in VRSI below 40 is a buy signal, while a downward turn above 60 is a sell signal. However, these level-based signals should be assessed in the context of the overall trend rather than applied mechanically.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusn7NOHNHxFs1imy5AAmTHwb"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusXtUBcwofUbg2avdcuKZgIb"><span style="font-size: 16px;">5.2 How does VRSI differ from traditional RSI?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjxMCJttJucRmj2ureH2Mxg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusub1hpIlx4CY7NOP6mkzkfb"><span style="font-size: 16px;">Traditional RSI is calculated solely from price gains and losses. VRSI incorporates trading volume, weighting the strength of gains and losses by volume to better reflect actual capital participation.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusLOXOakn1tyXiCpa01ZhiSd"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusO2ZnxuobB96MgNb7FJVChU"><span style="font-size: 16px;">5.3 Is there a better indicator than RSI?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGVGUd5KTeV6YasCLo3hClc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFIYChR2DfSmtEeOVjhaXuh"><span style="font-size: 16px;">No indicator is universally better than another, as each tool has a different focus. VRSI adds the volume dimension that traditional RSI lacks, but the best approach is to combine multiple indicators and validate signals across multiple timeframes.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQsd4InfATnEywGnVA9p4id"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuspMB1HohHA9G5myjoDcL26d"><span style="font-size: 16px;">5.4 What is the default VRSI setting?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxussjS4eRZvWrIdMvIEssOd8a"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusTEbFjlcC4MJvOMOkk0QVTh"><span style="font-size: 16px;">A common default lookback period is 14. Short-term traders can shorten the period to increase sensitivity, while long-term investors can extend it to filter out market noise.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJlCr53KhSByu0ohDWapP3b"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus4E8z0u7o1bmVUPpUAbxxxo"><span style="font-size: 16px;">5.5 Which markets can VRSI be used in?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusH3pHf6BTN4ioU0Q86HUFD2"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusD9V74zIwSS7UjzHiv5DqKl"><span style="font-size: 16px;">VRSI can be used in a range of markets, including stocks, ETFs, futures, forex, and cryptocurrencies. When trading digital assets on <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>, you can also apply the indicator's analytical approach to assess the relationship between volume and price.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus3xqa7wrffD8Ix1zsGKMehd"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus6XP8Wh0ZQMjMMuERQsjtQd"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusGyCmSnAfFMUhJ9HdlbG1Wg" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-volume-rate-of-change-vroc-in-u-s-stock-trading-499813728013424640" style="font-size: 16px;">How to Use the Volume Rate of Change (VROC) Indicator in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxush1AP92yCrNGQnDuvNTaatf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-slow-stochastic-oscillator-slowkd-in-u-s-stock-trading-499226348286023680" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Slow Stochastic Oscillator (SLOWKD) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusx9j3gxqN7betbL8gC9EyLc" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-tradingview-on-mexc-466637656862259200" data-lark-is-custom="true" style="font-size: 16px;">How to Use TradingView on MEXC</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusFcFEtWTretpaQAco4WZrsf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-cr-energy-index-in-trading-441192234786152448" data-lark-is-custom="true" style="font-size: 16px;">How to Use the CR Energy Index in Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusTBqtkj29rOdIPNvzgzqYWg" data-list="bullet"><div><a href="https://www.mexc.com/support/article/what-is-a-doji-candlestick-a-beginner-s-guide-to-identifying-and-trading-doji-patterns-495368797639296000" data-lark-is-custom="true" style="font-size: 16px;">What Is a Doji Candlestick?</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusRWwUDGPFDFVGy4Df9qSBPf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/what-is-a-hammer-candlestick-a-beginner-s-guide-to-identifying-and-trading-the-pattern-498483190094776320" data-lark-is-custom="true" style="font-size: 16px;">What Is a Hammer Candlestick?</a></div></li></ul></div>

<div data-page-id="SuvId17wVoSHqNxqH2dubPUlsDf" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxusOHpRpZ7f0tugeFrbc2PRD2"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusd9y20yDrz3pzSFcTWOtpic" data-list="bullet"><div><span style="font-size: 16px;">Volume Rate of Change (VROC) measures the percentage change in trading volume over a specified lookback period, helping traders assess changes in market participation.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusEOCXx6Bh190fMmgvJV0K9d" data-list="bullet"><div><span style="font-size: 16px;">VROC fluctuates around zero. Positive values indicate higher volume than the comparison period, while negative values indicate lower volume. Neither reading indicates price direction on its own.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusndmZgAm9HyEFh8rqSdBJbh" data-list="bullet"><div><span style="font-size: 16px;">In U.S. stock trading, VROC can help assess volume support for breakouts and highlight changes in participation that may warrant closer attention to potential reversals.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusYs3LHHam3t6FZrDrgm2myX" data-list="bullet"><div><span style="font-size: 16px;">VROC depends on accurate volume data and can be affected by market noise in sideways markets. Interpret it alongside price structure and other indicators rather than using it alone.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusv9OOGzlXvXVZ7KAAmdeAZc" data-list="bullet"><div><span style="font-size: 16px;">Common lookback settings include 12 or 25 periods. VROC and the cumulative On-Balance Volume indicator offer different perspectives and can be used together for a broader view of trading volume.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQCvwflntrcZokr1wSJaePp"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusZqpGcKIV5fuWOUeeBe1Lqd"><strong>1. What Is Volume Rate of Change?</strong></h2><div class="ace-line ace-line old-record-id-doxus6n0R7sH5AtZdwDjW94HU2e"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswnal6oMh0NQWy8bn5KSSee"><span style="font-size: 16px;">Volume Rate of Change (VROC) is a technical analysis tool that measures the percentage change in trading volume over a specified lookback period.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusK0xy2Tx9uZnct5u4D0Cswe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus0bTLdcEBp0vYshtJy8Go5g"><span style="font-size: 16px;">VROC works similarly to the price Rate of Change indicator, but analyzes volume rather than price. Significant chart formations, such as tops, bottoms, and breakouts, often coincide with increased trading volume. VROC can help traders identify these changes in activity as they develop.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusI3tFx175XmyYewSEZYhV2b"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXtpJVe755edmXj3WqdQcef"><span style="font-size: 16px;">For beginner U.S. Stock traders, VROC's key value is its view of market participation. A positive reading means current volume exceeds volume in the comparison period, while a negative reading means it is lower. Greater activity may support a price move in either direction; reduced activity may suggest weaker participation, but does not by itself confirm that a trend is ending.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusuxkRg1R9etu476mWMH7TXf"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"bb3465a8-0947-46e7-9180-4c64df22cd59","height":1418,"width":2938,"currHeight":1418,"currWidth":2938,"natrualHeight":1418,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FLm0VbcwAcovcTYx5zNTue5XqsEf%2F%3Fpreview_type%3D16","file_token":"Lm0VbcwAcovcTYx5zNTue5XqsEf","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgWrL6jbMIRMMEzzuPbE94Zg"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261105104518996VyIZTBmljLngjT.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJMbTBWYmN3QWNvdmNUWXg1ek5UdWU1WHFzRWYiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdXckw2amJNSVJNTUV6enVQYkU5NFpnIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9MbTBWYmN3QWNvdmNUWXg1ek5UdWU1WHFzRWYvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Lm0VbcwAcovcTYx5zNTue5XqsEf/?mount_node_token=doxlgWrL6jbMIRMMEzzuPbE94Zg&mount_point=docx_image" data-width="2938" data-height="1418" data-lark-image-uri="drivetoken://Lm0VbcwAcovcTYx5zNTue5XqsEf" data-lark-image-width="2938" data-lark-image-height="1418" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHvohIuPlyG9zSKwK37TtKh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusF4go0UhdYlYkc9g2P018Jb"><strong>2. How to Interpret VROC: Confirmation and Divergence</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswaWd0LCVms3Q0z4OwzTaie"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvCYAUoUv33KGzZqNwe8LMd"><span style="font-size: 16px;">VROC fluctuates above and below the zero line. A positive reading shows that current volume is higher than volume a specified number of periods ago. A negative reading shows that it is lower. A rising or falling VROC reflects a change in this comparison, not necessarily a rise or fall in price. Positive VROC can accompany either buying-driven rallies or selling-driven declines.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusWucvJpF4s7lyR9MfxjsujC"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgiqG2vLzXeC2lMSCwEg5Td"><span style="font-size: 16px;">1) Confirmation: When a price move is accompanied by increased volume relative to the lookback period, VROC can provide supporting evidence of greater participation. This applies to both upward and downward moves. Confirmation does not require price and VROC to move in the same direction.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus57LSWxrS4MrXKmtLOIca9e"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYeNUyofWQjiRJKtnVqqD8e"><span style="font-size: 16px;">2) Divergence: When price reaches a new high but VROC forms a lower high, it may indicate weakening volume momentum behind the price increase. Conversely, when price reaches a new low but VROC forms a higher low, it may suggest a change in volume momentum. However, neither pattern predicts a price reversal, as VROC measures changes in trading volume rather than buying or selling pressure.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6tuIFX7LaF5ZzFX8lxh5Pe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxust2ZC07Md10HY4J5MQORUTb"><span style="font-size: 16px;">Importantly, VROC does not indicate price direction or directly measure price volatility. It measures changes in trading volume and must be interpreted alongside price action.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdQlt87wcQEdgSy7IZ6szHf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus5lFWxJoGl3xEJz3WgPShKf"><strong>3. How to Use VROC in U.S. Stock Trading</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusNVDSRCdD92bJND25DNP8te"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusl6BRLOoxQ16kpOa8wmTLZC"><span style="font-size: 16px;"><strong>1) Breakout trading.</strong> When a stock breaks above resistance and VROC rises sharply into positive territory, the increase in volume may support the breakout and help traders assess a potential long entry. If price reaches a new high without a corresponding increase in volume, the breakout has less volume confirmation and warrants caution. Similarly, a break below support accompanied by a sharp positive VROC reading may support a bearish breakout. Volume confirmation does not guarantee that either breakout will continue.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXMw7nsvRDzQgMMTUOsgE0g"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusrpQDsP6OL5Xkv8IMpwQ3zh"><span style="font-size: 16px;"><strong>2) Reversal trading.</strong> Traders can compare price action with VROC to assess changes in participation around potential turning points. After a strong advance, a move from positive to negative VROC means volume has fallen below the lookback-period level; it does not predict a pullback. After a sustained decline, a recovery in VROC likewise does not establish a bullish reversal. In either case, a reversal setup needs confirmation from price structure before it can be perceived as a potential entry opportunity.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjQsQEJm9DK3ZULiRMDrnth"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusq8SUfn71yphbIHy4YeCxec"><span style="font-size: 16px;">Whichever approach you use, set stop-losses, manage position size, and test your rules in a simulated environment before applying them to live trades. <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>'s U.S. stock trading interface provides charting and risk management tools that can help beginners gradually develop their trading approach.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQZkEHj5FGUqgK5nFOmuMGf"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusX6HHkYNiCqgBJ89ic143qg"><span style="font-size: 16px;">*BTN-<strong>Trade U.S. Stocks</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">https://www.mexc.com/trade-stocks</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusTJPUasBavTLo6Usf2levcb"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"6fe1d71d-e3e9-4344-bc69-225edae9cfc3","height":1410,"width":2938,"currHeight":1410,"currWidth":2938,"natrualHeight":1410,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FDDGibN3kAo1ZigxD3zUuneOwsIb%2F%3Fpreview_type%3D16","file_token":"DDGibN3kAo1ZigxD3zUuneOwsIb","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgShPvGcC3Ym347DPfr0Tesg"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261105104518710ntSD9OiXiWk7kd.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJEREdpYk4za0FvMVppZ3hEM3pVdW5lT3dzSWIiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdTaFB2R2NDM1ltMzQ3RFBmcjBUZXNnIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9EREdpYk4za0FvMVppZ3hEM3pVdW5lT3dzSWIvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/DDGibN3kAo1ZigxD3zUuneOwsIb/?mount_node_token=doxlgShPvGcC3Ym347DPfr0Tesg&mount_point=docx_image" data-width="2938" data-height="1410" data-lark-image-uri="drivetoken://DDGibN3kAo1ZigxD3zUuneOwsIb" data-lark-image-width="2938" data-lark-image-height="1410" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgZnPDPPxxxKgzcS4OoNJAh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusGjt68Cpc4QBHrvTHhBKqYf"><strong>4. Important Considerations When Using VROC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxuslxgm3LAEZFhjzdPtZGuuwA"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIzhQdsIZvUPBhpTJ6bxj4d"><span style="font-size: 16px;">1) VROC depends on accurate <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-moving-average-of-volume-in-trading-421863713722995712">trading volume</a> data. It is most useful when the data reliably represents trading activity in the market being analyzed.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusrkoPlYmaidPicPvBfF1Wgd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqdiFKQ8mI60cnGnHU2Rftf"><span style="font-size: 16px;">2) In sideways markets, fluctuations in volume can create market noise and make VROC harder to interpret. A clear price trend can provide more context, but VROC is not a standalone trend signal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuskAYFNEICv8NzsdIN5OOaNb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6sNN8KPEE8b0uSIM4xi1OB"><span style="font-size: 16px;">3) VROC is a supporting tool, not an independent basis for buying or selling. Use it with price structure, <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-support-and-resistance-levels-in-trading-462151469032291328">support and resistance</a>, and other indicators, and always apply appropriate risk controls.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusn6uXPiAPxYObUAr95yZ0of"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusU8ZnZ9TKpzx1j9PbzebWkb"><strong>5. Volume Rate of Change FAQ</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6lOf0kDJtUXfu2hoMmnNvU"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxustfehwGBjPupwJa8KdSKBRc"><span style="font-size: 16px;">5.1 What is Volume Rate of Change?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvNmEJL6JFrSyaZHH7Ec95d"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuspcnNpOTZOS8l8BNnmsbjTN"><span style="font-size: 16px;">Volume Rate of Change measures the percentage difference between current trading volume and volume a specified number of periods ago. It helps traders assess changes in market participation.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxussddeG3Gpp80kgmXqTQPhth"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusU3kylNvBiGDpG0PhQphX5f"><span style="font-size: 16px;">5.2 What does VROC stand for?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMQsLvafwTAXdM3y6S7Vh4d"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbGBoebnHW2NDGb4vsgGijf"><span style="font-size: 16px;">VROC stands for Volume Rate of Change. It is a volume-based momentum oscillator that fluctuates around zero.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusldjtCn7ntvp6cHVbiXTbeb"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusiwt2AP0eXB3GSgVCEDhNhe"><span style="font-size: 16px;">5.3 What are the best settings for VROC?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxuslsIBgjg6zdnaZcUYlT0O2f"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMj5IwOglblEXI3KwLU8BPb"><span style="font-size: 16px;">Common lookback settings include 12 or 25 periods. Shorter settings tend to respond more quickly but may produce more market noise, while longer settings provide a longer-term comparison. There is no universally best setting; test and adjust the lookback period to suit your trading timeframe.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuslxT5IuWrHYc6GG6m4jMOtg"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus9XKoX9RQCPZOsSGEOhQckf"><span style="font-size: 16px;">5.4 Is On-Balance Volume useful, and how does it differ from VROC?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusl3q3yJlxzf83RA6DeEdVxK"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFHSgSwEqUgeaI2vLABxluh"><span style="font-size: 16px;"><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-on-balance-volume-in-trading-451161858902562816">On-Balance Volume (OBV)</a> is a cumulative indicator that adds or subtracts volume according to the direction of the closing price change. VROC instead measures the percentage change in volume over a lookback period, without assigning it a price direction. The two provide different perspectives and can be used together for a broader view of volume activity.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusPt4vLkUkrS8qebz6nm4kJe"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus50NmedAIG5hl5IQlEAc1Nd"><span style="font-size: 16px;">5.5 Where can I practice using VROC?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFTPOF0Y3yWo4fhrUAmN4sb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGDMrvwjA09WomqaCuF5fpc"><span style="font-size: 16px;">You can use MEXC's U.S. stock charting tools to analyze price and volume together, apply VROC in your trading analysis, and gradually refine your strategy.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusAYjJKEvV7MluMQHLV2VLje"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuspjGSRALDhliiMJUFeYfBSe"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusdXASg3agUL5G4LaIuyVbWc" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-slow-stochastic-oscillator-slowkd-in-u-s-stock-trading-499226348286023680" style="font-size: 16px;">How to Use the Slow Stochastic Oscillator (SLOWKD) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusZSNs4oqBU7MduEhDE4Mk5c" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-detrended-price-oscillator-dpo-in-u-s-stock-trading-498339815496500224" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Detrended Price Oscillator (DPO) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusil4xVOmJppi5pVxANTvBYb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-dbcd-in-u-s-stock-trading-493141126951843840" data-lark-is-custom="true" style="font-size: 16px;">How to Use DBCD in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusYaqaqZk4oHT5KeEorpzjXf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-displaced-moving-average-dma-in-trading-447820795253059584" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Displaced Moving Average (DMA) in Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusNfcEtbdhCGGVhAT8TbJekd" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-psychological-line-psy-indicator-in-trading-443492945687418880" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Psychological Line (PSY) Indicator in Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus85QqaI0Ay7GdjGjlFlfCJb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-cr-energy-index-in-trading-441192234786152448" data-lark-is-custom="true" style="font-size: 16px;">How to Use the CR Energy Index in Trading</a></div></li></ul></div>

<div data-page-id="LwoRdX7BNoMNJrxLTbfuCKrZsdf" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxusPQMq9EplHpMfHWtKYCAs3d"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li class="ace-line ace-line old-record-id-doxus4SLNhjq4XHOD2wB5WSduqh" data-list="bullet"><div><span style="font-size: 16px;">The slow stochastic oscillator is a momentum indicator that fluctuates between 0 and 100.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus1lWjAD4nnYq9zVdHkF3mxK" data-list="bullet"><div><span style="font-size: 16px;">It smooths short-term price fluctuations, producing a steadier line than the fast version and helping filter market noise.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusYb864Hq4DayOYhkbQ72ERf" data-list="bullet"><div><span style="font-size: 16px;">A common parameter setting is (14, 3, 3). Readings above 80 indicate overbought conditions, while readings below 20 indicate oversold conditions.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusBq7yIAsDNZLRDxtc6OnNRd" data-list="bullet"><div><span style="font-size: 16px;">Crossovers between the K and D lines and divergence patterns are key tools for identifying potential buy and sell signals.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus1mVvRh1qZ3U0IMSqCQ2NEg" data-list="bullet"><div><span style="font-size: 16px;">The same analytical principles can also be applied to cryptocurrency trading on MEXC.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxuscFn1mSpSAifaO5IwzPIcbb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusAc4nob8lz9aL8BaefolGvA"><strong>1. What Is the Slow Stochastic Oscillator?</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus4RleW7IBgZ8WzP2eaX4r2c"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusICeglYT3JRWfDBCZNL2iHf"><span style="font-size: 16px;">The slow stochastic oscillator (SLOWKD) is a smoothed version of the momentum indicator developed by George Lane in the late 1950s. It measures where the closing price sits within the high-low range over a given period. Traders use it to identify potential trend reversals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusEXW7tOMZ1vN8dgMJw7SJAf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHTVGkIMpgVtXgCu0G81Xce"><span style="font-size: 16px;">The slow stochastic oscillator builds on the original <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-stochastic-oscillator-in-trading-427169948248728576">stochastic oscillator</a>, also known as the fast stochastic oscillator. It applies a moving average to the K value to smooth short-term price fluctuations and help filter market noise when assessing potential entries and exits. Its values remain between 0 and 100, making it useful for identifying overbought and oversold conditions.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYR41T78sZdmsdYWBB4cB3g"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus9i3hp9bYbdhYk6i4T5l71d"><strong>2. Slow Stochastic Oscillator Settings</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusow83kDFDclPbRA5kiOt7lb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHHOP7HVHUkZK86yq9QTeRg"><span style="font-size: 16px;">A common parameter combination for the slow stochastic oscillator is (14, 3, 3). The first number, 14, represents the lookback period, which can be measured in days, weeks, or intraday intervals. The second number, 3, is the moving average period used to smooth the K value. The third number, 3, is the moving average period used to calculate the D value.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8InX1dfibhd6vQbjJYaEEe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus1B4Jgqxp7qcFt0EKw6tfQh"><span style="font-size: 16px;">Settings can be adjusted to suit different trading styles. A shorter lookback period, such as 5 or 10, makes the indicator more sensitive, generating more signals but also more market noise. This may suit short-term traders. A longer lookback period, such as 20, produces a smoother indicator with fewer signals and may suit swing traders. Some short-term traders use (5, 3, 3) for greater sensitivity. On <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>, users can customize the SLOWKD parameters available in the U.S. stock chart's "Index Loading" panel to suit different instruments' volatility.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusaqmBWAZk2TuV48UPqFOkJd"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"74401aca-2424-4d02-9352-4dbc272b56f3","height":1416,"width":2938,"currHeight":1416,"currWidth":2938,"natrualHeight":1416,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FFQvvbaqxvoBbhnxxLg1uBUPMsEd%2F%3Fpreview_type%3D16","file_token":"FQvvbaqxvoBbhnxxLg1uBUPMsEd","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgy6fNCLmVg33L31phED1oPc"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F202611041545551174keBDTKP5nyQaU.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJGUXZ2YmFxeHZvQmJobnh4TGcxdUJVUE1zRWQiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGd5NmZOQ0xtVmczM0wzMXBoRUQxb1BjIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9GUXZ2YmFxeHZvQmJobnh4TGcxdUJVUE1zRWQvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/FQvvbaqxvoBbhnxxLg1uBUPMsEd/?mount_node_token=doxlgy6fNCLmVg33L31phED1oPc&mount_point=docx_image" data-width="2938" data-height="1416" data-lark-image-uri="drivetoken://FQvvbaqxvoBbhnxxLg1uBUPMsEd" data-lark-image-width="2938" data-lark-image-height="1416" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusppJJk9NUG1VvDIh1onDXUh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusMHqSizNpPzNxTl2dLZVZyg"><strong>3. How to Identify Buy and Sell Signals With the Slow Stochastic Oscillator</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIx1NFpzJ1b8lhQdCKiM2Wd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusAPWRrLsDQoUSBzh5fLvYpf"><span style="font-size: 16px;">1) Overbought and oversold conditions. A reading above 80 places the indicator in the overbought zone, where traders may watch for a potential pullback. A reading below 20 places it in the oversold zone, where traders may watch for a potential rebound. However, the indicator can remain above 80 during a strong uptrend or below 20 during a strong downtrend. A single reading should not be used as a standalone entry signal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusLm5aFT9I87sihvImtZCvVd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus1pNdHIpj8nxMP7ukiL30Ef"><span style="font-size: 16px;">2) <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-golden-cross-and-death-cross-signals-in-trading-458446716142076928">Golden cross and death cross</a> signals. When the K line crosses above the D line near 20, traders may interpret it as a potential buy signal. When the K line crosses below the D line near 80, it may indicate a potential sell signal. Crossovers near the 50 midpoint generally provide less context than those near the extreme zones and should not be relied on alone.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusCJeR0IPkTp3TzhbJtv2HFh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGTYrKQnGv3DTK3vGOFokug"><span style="font-size: 16px;">3) Potential bottoming signals. If the indicator forms repeated bullish crossovers below 20 and then rises back above 20, it may suggest that a bottom is forming. Traders can use this as a potential entry signal, rather than treating it as proof that the bottoming process is complete.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqNCDiD1WZRljkbEoY8YoPg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusY2aKJaOtwW1U2VlnZpCEUb"><span style="font-size: 16px;">4) Divergence patterns. Bullish divergence occurs when the price makes a lower low while the indicator forms a higher low, suggesting that downward momentum may be weakening. Bearish divergence occurs when the price makes a higher high while the indicator forms a lower high, suggesting that upward momentum may be fading. After a divergence appears, traders can wait for the indicator to cross the 50 midpoint in the expected direction or for the price to break a key support or resistance level before acting.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusnNKLZzHfRk8RGPardmi6Wc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswV3Ovz941hLwnN2h1i2vRg"><span style="font-size: 16px;">5) Trading with the trend. In an uptrend, focus on recoveries from oversold conditions rather than treating repeated overbought readings as automatic sell signals. In a downtrend, focus on declines from overbought conditions rather than treating repeated oversold readings as automatic buy signals. This helps align potential trades with the broader trend, but does not guarantee a higher win rate.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusm9vescXBIPyQVahQnC52wb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusBcJVdpdDrAJsZOg9RblQ7d"><strong>4. Fast vs. Slow Stochastic Oscillator</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusoHRoAP9zqlqBNKlYpk4KOc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusAoSSkqznZeBBD4W7MLd4ug"><span style="font-size: 16px;">The fast stochastic oscillator uses the unsmoothed K value, producing a more volatile line and more frequent signals that can be misleading. The slow version typically applies an additional three-period moving average to K. This creates a smoother line that is less sensitive to price changes and helps filter market noise, although smoothing does not guarantee more accurate signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusLqq3eoZZWBnnHCOBjFYdIe"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxushrEetbRSt0sSDWPwYc4x6b"><strong>5. Slow Stochastic Oscillator vs. Relative Strength Index</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusuVUUGmGHZ6tVv9rcHgmGZe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXTEqRU2Eg1yMzOJKqxmoyg"><span style="font-size: 16px;">The <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-relative-strength-index-rsi-in-trading-425570029981283328">Relative Strength Index (RSI)</a> is calculated from the magnitude of price gains and losses over a given period. The slow stochastic oscillator instead measures the closing price's position within the period's high-low range.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusLUQVXMVqr6XaBTr0bVpUae"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxustGa8jtulfglyZt0A4pXVzf"><span style="font-size: 16px;">Despite its smoothing, the slow stochastic oscillator may move between overbought and oversold zones more frequently than RSI. RSI may produce fewer extreme readings, although the relative behavior of the two indicators depends on their settings and market conditions. Neither is universally better. Many traders use them together to cross-check signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6Acg6VuHGqBHN0MdeRlQEd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus12qwZ1qbR0xYDbZ9K68mo5"><strong>6. Tips for Using the Slow Stochastic Oscillator on MEXC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIKNB2s9YTudwEsgVytWq4e"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusaTkljF7rkJfRwocPNpI9fe"><span style="font-size: 16px;">MEXC's <a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">U.S. stock trading</a> interface includes candlestick charting tools that let users add SLOWKD and customize its parameters. Beginners can follow these principles:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus7zbWWxRCPYGsu1ypN2HBmg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus9HbFXDEZsvzBagPaWFsaSg"><span style="font-size: 16px;">1) Combine the slow stochastic oscillator with trendlines, <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-support-and-resistance-levels-in-trading-462151469032291328">support and resistance levels</a>, and other technical analysis tools to look for opportunities supported by multiple signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusG9Qv4Zqzxa5SYymgzbUHqe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswcieaDhKtjiTKdLgF1XVUT"><span style="font-size: 16px;">2) Test a strategy with small positions before considering a gradual increase in position size.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJsdCDQQfvk201La0iHaJXe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuso9bWbNm8dmZlxokRMf0uDh"><span style="font-size: 16px;">3) Always set a stop-loss. Technical indicators can help assess probabilities, but no indicator can guarantee that every signal will be accurate.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusM3qjflCjhxw4NIoyrCDnMd"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusX7tT1qpXQ2APddjVWTr6Hb"><span style="font-size: 16px;">*BTN-<strong>Trade U.S. Stocks</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">https://www.mexc.com/trade-stocks</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYQAvoHfKuWNrgOEXH22Dlc"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"632c89ec-6e36-4918-8f0b-1f827aae07f6","height":1408,"width":2938,"currHeight":1408,"currWidth":2938,"natrualHeight":1408,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FOkp1bCdpro9zkFx1f2MuycW6skh%2F%3Fpreview_type%3D16","file_token":"Okp1bCdpro9zkFx1f2MuycW6skh","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgfrtNR8vJMq95DcZG4RuV4c"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261104154555498lVKlQRsSzkKBem.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJPa3AxYkNkcHJvOXprRngxZjJNdXljVzZza2giLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdmcnROUjh2Sk1xOTVEY1pHNFJ1VjRjIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9Pa3AxYkNkcHJvOXprRngxZjJNdXljVzZza2gvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Okp1bCdpro9zkFx1f2MuycW6skh/?mount_node_token=doxlgfrtNR8vJMq95DcZG4RuV4c&mount_point=docx_image" data-width="2938" data-height="1408" data-lark-image-uri="drivetoken://Okp1bCdpro9zkFx1f2MuycW6skh" data-lark-image-width="2938" data-lark-image-height="1408" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfiCCZfzjE7KpvlkmmRF0Bd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusitDYWcvm3q6vrw4T2EqKRe"><strong>7. Slow Stochastic Oscillator FAQ</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus7efr6fr4QTFq0He90NFend"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusmgvG4FyQe74RXsKQ6ZsS6e"><span style="font-size: 16px;">7.1 What are the best settings for the slow stochastic oscillator?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusReJf1u6UyRKTyFJBgccOoh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdrnjYweOYg4BPfopEmviYf"><span style="font-size: 16px;">A common starting point is (14, 3, 3). Short-term traders may use (5, 3, 3) for greater sensitivity, while swing traders may use (20, 5, 5) to reduce market noise. The most suitable settings depend on the trading timeframe and market conditions.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusS7S0WXncKHFuNarvxyS73e"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusuWR1xCZB4ligxz85b9G0Rh"><span style="font-size: 16px;">7.2 How can the slow stochastic oscillator help identify entry and exit points?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6rFQipcU3YEVkwIVj9FizD"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus7mKA0heTIYUGQCOGXWoptc"><span style="font-size: 16px;">A K line crossover above the D line near 20 may indicate a potential buy signal, while a crossover below the D line near 80 may indicate a potential sell signal. A move back above 20 from the oversold zone can support a rebound signal, while a move below 80 from the overbought zone can support a pullback signal. Assess these signals alongside divergence patterns and the broader trend.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusVcw85epHO2o8icxIHT0WIh"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusjjcEzoHFhtFlmeLweM12eV"><span style="font-size: 16px;">7.3 Is the slow stochastic oscillator better than RSI?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus9EfxjHXuFH0QDMlk6gzaIg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusCcO2AiMHyVUCivJK5N48ld"><span style="font-size: 16px;">The slow stochastic oscillator can be more sensitive and generate more signals in range-bound markets, while RSI may produce fewer extreme readings. Their behavior depends on the settings and market conditions. Neither is universally better, and the two can be used together to cross-check signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuszg1fUiyV17MN9oIEAEXkMe"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus2Xs5y2bxk5Cqehmq2j0mr3"><span style="font-size: 16px;">7.4 What is the difference between the fast and slow stochastic oscillators?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMi8WyLDkSqUy27E1mahFhf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusX6SH4tfOwalArnMKUnnX9U"><span style="font-size: 16px;">The fast version uses the unsmoothed K value, producing a more volatile line and frequent signals. The slow version typically smooths K with a three-period moving average to help filter market noise. With the standard three-period smoothing, the slow version's K value equals the fast version's D value.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMe2AvdoaxIPAG1lJL34ykf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus5KCNseHXMsoLrUvpe2uzOd"><span style="font-size: 16px;">7.5 Should I sell immediately when the slow stochastic oscillator rises above 80?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusNHPaaG569imCOyOgrNBsXb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGIjZWn66WyD8wbxA9joDyc"><span style="font-size: 16px;">No. An overbought reading does not necessarily mean the price will fall. The indicator can remain above 80 for an extended period during a strong uptrend. Instead of selling solely because it is overbought, traders may wait for it to fall below 80 and look for confirmation from price patterns before making a decision.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6fAU9taebej9ZZBMkbjCxr"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusDck3piclPJTV0OaPefCtMg"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusVJ6rsCDsAVKb0Mlxwjpk1f" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-detrended-price-oscillator-dpo-in-u-s-stock-trading-498339815496500224" style="font-size: 16px;">How to Use the Detrended Price Oscillator (DPO) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusIcO4Vq19rLsvLdUzIt1htc" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-dbcd-in-u-s-stock-trading-493141126951843840" data-lark-is-custom="true" style="font-size: 16px;">How to Use DBCD in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusNSKc1VHVSRptFvF6bLb0rb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-adtm-indicator-in-u-s-stock-trading-490185227379520512" data-lark-is-custom="true" style="font-size: 16px;">How to Use the ADTM Indicator in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusVuu0m0UGgac4C0LPY7bDre" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-simple-moving-average-sma-in-trading-456004357219401728" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Simple Moving Average (SMA) in Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusx7EGQLOCOIKNZJaifYemzb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-ease-of-movement-emv-in-trading-452624432705815552" data-lark-is-custom="true" style="font-size: 16px;">How to Use Ease of Movement (EMV) in Trading</a></div></li></ul></div>

<div data-page-id="Hjkad2WpPoyI5mx5c3luJq8wsNd" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-3 ace-line old-record-id-doxusL0LSUwHGZQEvcxTm8i1PFg"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusX9KQJcJ80AFSGoYzlbt79d" data-list="bullet"><div><span style="font-size: 16px;">The Detrended Price Oscillator (DPO) is a technical indicator designed to remove longer-term trends and highlight shorter-term price cycles.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusHuIrOv1VIgjzoSSOHHWAnf" data-list="bullet"><div><span style="font-size: 16px;">DPO is calculated using the difference between a historical closing price and a simple moving average.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusyDbVhxQksBjsJ68QdYkS8g" data-list="bullet"><div><span style="font-size: 16px;">DPO can help traders assess potential overbought and oversold levels, identify cycle highs and lows, and analyze potential entry and exit timing.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusqOg80R1wcHmAycyoLkReih" data-list="bullet"><div><span style="font-size: 16px;">DPO is not a momentum indicator and should not be used on its own to assess trends. It is best used alongside other indicators.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus2u1hQJFIbrNQVWY3ycIqt9" data-list="bullet"><div><span style="font-size: 16px;">Users can add DPO to MEXC's U.S. stock charts to support their analysis.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusw55rtai3UwpStiL73xsa8g"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusMpUJz1GLzSRNhKtjMryCMc"><strong>1. What Is the Detrended Price Oscillator?</strong></h2><div class="ace-line ace-line old-record-id-doxusQn7eRfxvTLaUBzyZBDO7Hc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusyvFewdkZnZQ0GQ7HZQwFEh"><span style="font-size: 16px;">The Detrended Price Oscillator (DPO), introduced by Walt Bressert, is an oscillator used in technical analysis. It aims to remove the influence of longer-term price trends so traders can identify shorter-term price cycles more clearly. A cycle is the time between successive peaks or successive troughs.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZC73O1s42oacPnd36SKDhe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusDxKce2TYZ2nEnOKP20piQe"><span style="font-size: 16px;">Unlike momentum indicators such as <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-macd-indicator-in-trading-426304203100942336">Moving Average Convergence Divergence (MACD)</a>, DPO does not measure how quickly prices change. Instead, it compares historical prices with a displaced <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-simple-moving-average-sma-in-trading-456004357219401728">simple moving average (SMA)</a> to highlight historical price highs and lows. This makes it better suited to cycle analysis than real-time trend tracking.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusCkthWJ5liEiXCakloULgbf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxustYCjNHS1QAJgKqY2fyBLe7"><strong>2. How Is DPO Calculated?</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxustKnOxzDG4DA3IMUyx3WR6b"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYaZ8r5jbc76E1IDYuZgoqd"><span style="font-size: 16px;">The DPO formula is: DPO = Closing price from (X / 2 + 1) periods ago − Current X-period SMA</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6fjbhXkzl8ns5FOaqFPTmf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuso9KY7lfFBpkty2r7CMPuVf"><span style="font-size: 16px;">X is the user-defined lookback period. For a commonly used 20-day DPO:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus2snP4qL2eVqgHEwtk3vgcF"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusCDnaTcy44YDgtbO0blD3gd"><span style="font-size: 16px;">1) Calculate the 20-day simple moving average.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJz7pudhokVNfY0PQALDhXe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfQl7NvcKw1RxeQ0FA5eVJJ"><span style="font-size: 16px;">2) Calculate the displacement: 20 / 2 + 1 = 11 periods.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusOGDMoFU5G0yHzWu3qIyKuK"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusloi02yBGYIFWqnXGMCJeEb"><span style="font-size: 16px;">3) Subtract the 20-day SMA value from the closing price 11 periods ago to obtain the DPO value.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMNTVWnK2SaPImY4O65Zbph"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusW4v44VEP3O87oTVKWdNevh"><span style="font-size: 16px;">The displacement aligns the moving average with an earlier price observation, helping filter out longer-term trends and highlight shorter-term cyclical fluctuations..</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusANBWtjZXsYVeQpuCDuYY6d"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"1df74812-4fe0-406f-8c04-e2b6a4311303","height":1468,"width":2938,"currHeight":1468,"currWidth":2938,"natrualHeight":1468,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FXeNNbyp0toQKqLxh6jpuTTKls6b%2F%3Fpreview_type%3D16","file_token":"XeNNbyp0toQKqLxh6jpuTTKls6b","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgOaumRLT0IIlBcTqKqWuNTe"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261103110549593j0i0nVEpGtO44R.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJYZU5OYnlwMHRvUUtxTHhoNmpwdVRUS2xzNmIiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdPYXVtUkxUMElJbEJjVHFLcVd1TlRlIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9YZU5OYnlwMHRvUUtxTHhoNmpwdVRUS2xzNmIvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/XeNNbyp0toQKqLxh6jpuTTKls6b/?mount_node_token=doxlgOaumRLT0IIlBcTqKqWuNTe&mount_point=docx_image" data-width="2938" data-height="1468" data-lark-image-uri="drivetoken://XeNNbyp0toQKqLxh6jpuTTKls6b" data-lark-image-width="2938" data-lark-image-height="1468" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGqeu2gizJk1ChEkCIN4DSg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus1bIzkWoK0aQp0oG2dKnUOd"><strong>3. How to Use DPO</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgfVmhz8TyJZaNxdO8Poi6h"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus37pw8AkN8r5TiIvhn13wbd"><span style="font-size: 16px;">DPO fluctuates above and below zero. Common ways to interpret it include:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus7LqGxVNx1Y0jAHqwsL37ae"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdhG1h0gxAdyJN4VTH2tPzE"><span style="font-size: 16px;">1) Interpreting positive and negative readings. A positive DPO value indicates that the historical closing price used in the calculation is above the SMA value used for comparison, which some traders interpret as a bullish indication for that historical period. A value below zero means it was below the average and may be interpreted as bearish. These readings do not establish the current trend.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJEFBNZmKud7pdHC6e6l47g"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuscAjauF8L7YkuN9MmfGgfdd"><span style="font-size: 16px;">2) Zero-line crossovers. </span></div><div class="ace-line ace-line old-record-id-LjX0dy8Q4o1hNAxcrxsueI04snf"><span style="font-size: 16px;">Some traders examine historical zero-line crossovers to identify changes in cyclical price behavior. However, because DPO is displaced into the past, these crossovers should not be treated as real-time buy or sell signals.</span></div><div class="ace-line ace-line old-record-id-JbzFd3wOTolVInxurj0uPOyrsab"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8u5EvkpC7BDJQRbgI1QAPc"><span style="font-size: 16px;">3) Overbought and oversold zones. Traders can set an upper reference level above zero to identify potential short-term cycle highs and a lower reference level below zero to identify potential cycle lows. Reaching either level may suggest relatively overbought or oversold conditions within the cycle, rather than confirm a price reversal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusUYhoFoB0304jNX9HRDm88i"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXUs7Z2SwOdQ6VWGoboVR5T"><span style="font-size: 16px;">4) Measuring cycles. By observing historical DPO peaks and troughs and measuring the time between successive peaks or successive troughs, traders can estimate a typical cycle length. For example, if troughs have occurred roughly two months apart, this may help identify when to watch for the next potential buying opportunity near a cycle low.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusccVmvBSqXivYBeqar2q9nd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusT9G6G2JRLnfNyHfeTjd5gc"><strong>4. Suggested DPO Settings</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusrOK5ZGb8XFaCBxNBCgCocc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuss76AGPhKvnMQJxOSt1qtTg"><span style="font-size: 16px;">A common default DPO lookback is 20 periods. Beginners can use the following approaches as a starting point:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus36n34z6lE1aQE5xrCYuhCh"><span style="font-size: 16px;"><br></span></div><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusc1kQ7cx92uNe74RTCAQSyB" data-list="bullet"><div><span style="font-size: 16px;">Short-term trading: A shorter lookback, such as 14 periods, can help highlight shorter price cycles.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusVlFjopNxynD02Q1yxbZzDe" data-list="bullet"><div><span style="font-size: 16px;">Medium-term analysis: The default 20-period setting can serve as a starting point for analyzing intermediate cycles.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusNLpwU9Yl5L5zD0D0RPGrEc" data-list="bullet"><div><span style="font-size: 16px;">Weekly charts: Consider a longer lookback and keep the timeframe units consistent.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusuGuf0ix7KO8zFcds2qkHgc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusvwcPfS4HpaWeLfxPGvTKZe"><strong>5. Three Ways to Incorporate DPO into a Trading Strategy</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZVTnDBNnExMygIHEmTWKVg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiKbJ1sxWUbRoEBYbXjXvLd"><span style="font-size: 16px;">Strategy 1: Combine zero-line crossovers with candlestick patterns. A historical DPO crossover above zero may be examined alongside bullish candlestick patterns from the corresponding period, such as bullish engulfing patterns or hammers. Conversely, a crossover below zero may be assessed alongside a bearish pattern when considering an exit. The historical alignment of DPO must be taken into account when comparing the signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusKTcoN0YbM3oAyg1HIechue"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus3emXgUzkk6Ri0XpPeNqer1"><span style="font-size: 16px;">Strategy 2: Use cycle highs and lows to assess timing. The cycle length estimated from DPO can help traders look for potential buying opportunities near cycle lows within an uptrend, or consider taking profits near cycle highs. The time between a peak and a trough can also provide a reference for a potential holding period.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuscq5qBI0JQOgpfoFFeb7Mse"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjPpA2QNHLJQWrClocqQGfc"><span style="font-size: 16px;">Strategy 3: Use volume for confirmation. Trading volume reflects market activity. Traders can give more weight to DPO-related setups when supported by rising or elevated volume, and avoid relying on setups during low-volume periods to reduce the influence of market noise.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJgeWk9chGmqYQettUMgRdh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusKRgtfW0QfTjbyPqL7Hib8b"><strong>6. Limitations of DPO</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZqKJMHGjeA6mhI65Et5xge"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHMVFqtSIQ1aqfZ6r8qDw1b"><span style="font-size: 16px;">DPO can be useful, but beginners should understand its limitations:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusxITGcbKuF7i5PjA8kuCDbd"><span style="font-size: 16px;"><br></span></div><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusgNrEychAMfMRs3ksu5rOzb" data-list="bullet"><div><span style="font-size: 16px;">It should not be used alone: DPO is a supporting tool. Historical cycles may not repeat, and their duration can lengthen or shorten.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus6kx8fWpVixH51xpsukDCIf" data-list="bullet"><div><span style="font-size: 16px;">It does not establish trend direction: Even if price appears to be near a cycle low, buying during a sustained downtrend can still result in losses.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusAVRSQpFTbDlmIDsoLo1d4f" data-list="bullet"><div><span style="font-size: 16px;">It is backward-looking: When displaced into the past, DPO does not reflect the latest price in real time and is not suitable for assessing the immediate trend.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusORKh4bEUWDe8XCSAvHeXLg" data-list="bullet"><div><span style="font-size: 16px;">Peaks and troughs vary in height: Not all peaks or troughs reach the same level. Important highs and lows should be assessed alongside price action.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusUjHcyEk1johhufLvNa9Llh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjmquMS7fz3nVFrdzsWI2Jh"><span style="font-size: 16px;">Use DPO alongside trend and momentum indicators, and set stop-loss orders to help manage risk.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdTegbSatHgzdVgwBZRBQsh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusnZzSlXjvuOvqxTDpIggS9c"><strong>7. How to Use DPO on MEXC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusyAKEjonHXAishdysG5XFL7"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuskK2va2idASLSCNkMLeVhEf"><span style="font-size: 16px;">MEXC's U.S. stock trading interface provides charting tools that allow users to add DPO to their analysis. Follow these steps:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgEQyCR9TQIzBiK9boFMGQb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusipjKB4dg9yximc0IVNbHCd"><span style="font-size: 16px;">1) Log in to your MEXC account and open the U.S. stock trading page.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbJyeWkMDc126u6M9tMHgMJ"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYFY35AvZoo8WqZcI3ICXKb"><span style="font-size: 16px;">2) Open the chart's <strong>Indicator Loading</strong> panel, then search for and add <strong>DPO</strong>.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdRdrZ6fz7mVxuRou6q09jg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus57zYTpWJlLrjYDUwrD1RDg"><span style="font-size: 16px;">3) Adjust the lookback period to suit your trading style. Assess the indicator alongside candlestick patterns, volume, and other tools before placing a buy or sell order.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusifw38EvOWu6MGZLqEhbEHb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusWQrhib5e5zBCX8GZ0no7Tc"><span style="font-size: 16px;">Beginners are advised to first use MEXC's charting tools to observe and review historical setups. Once familiar with DPO's characteristics, they can gradually incorporate it into live trading while maintaining appropriate position sizing and risk controls.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbbkDbtXxZyTAr1CDqVg1Bb"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxuseAPP6FXX3gMlnD61kYO8jf"><span style="font-size: 16px;">*BTN-<strong>Trade U.S. Stocks</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">https://www.mexc.com/trade-stocks</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusm7npXaW77tpk5oJE6NHknd"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"45d0e47f-6987-45cf-a6b2-d4997b0bfd24","height":1468,"width":2938,"currHeight":1468,"currWidth":2938,"natrualHeight":1468,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FQnq3b0QVVoxvnfxTRz4utVIxsOh%2F%3Fpreview_type%3D16","file_token":"Qnq3b0QVVoxvnfxTRz4utVIxsOh","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlggj35jFNjHSWOEtZzSRYRVg"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261103110555362O4kx1sWeUchryK.png" data-single-block="true" data-snapshot="eyJ0eXBlIjoiaW1hZ2UiLCJwYXJlbnRfaWQiOiJIamthZDJXcFBveUk1bXg1YzNsdUpxOHdzTmQiLCJjb21tZW50cyI6W10sInJldmlzaW9ucyI6W10sImxvY2tlZCI6ZmFsc2UsImhpZGRlbiI6ZmFsc2UsImF1dGhvciI6Ijc2MDMyMTcwNjc1MzMxNDM0NzYiLCJhaV9leHRyYSI6eyJnZW5fc291cmNlcyI6WzFdfSwiYWxpZ24iOiIiLCJpbWFnZSI6eyJ0b2tlbiI6IlFucTNiMFFWVm94dm5meFRSejR1dFZJeHNPaCIsIm1pbWVUeXBlIjoiaW1hZ2UvanBlZyIsInNpemUiOjEsInNjYWxlIjoxLCJ3aWR0aCI6MjkzOCwiaGVpZ2h0IjoxNDY4LCJuYW1lIjoiaW1hZ2UucG5nIiwiY3JvcCI6WzAsMCwwLDBdLCJyb3RhdGlvbiI6MCwiY2FwdGlvbiI6eyJ0ZXh0Ijp7ImFwb29sIjp7Im5leHROdW0iOjAsIm51bVRvQXR0cmliIjpudWxsfSwiaW5pdGlhbEF0dHJpYnV0ZWRUZXh0cyI6eyJhdHRyaWJzIjpudWxsLCJ0ZXh0IjpudWxsfX19fSwiYXJlYV9jb21tZW50cyI6bnVsbH0=" data-suite="eyJmaWxlVG9rZW4iOiJRbnEzYjBRVlZveHZuZnhUUno0dXRWSXhzT2giLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdnajM1akZOakhTV09FdFp6U1JZUlZnIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9RbnEzYjBRVlZveHZuZnhUUno0dXRWSXhzT2gvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Qnq3b0QVVoxvnfxTRz4utVIxsOh/?mount_node_token=doxlggj35jFNjHSWOEtZzSRYRVg&mount_point=docx_image" data-width="2938" data-height="1468" data-lark-image-uri="drivetoken://Qnq3b0QVVoxvnfxTRz4utVIxsOh" data-lark-image-width="2938" data-lark-image-height="1468" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusVAfkbscnzHMaalXVIpl6ff"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusLJp3Eb8Hq98W81vp08NMvf"><strong>8. DPO FAQ</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusds9IULyDNvIokHFSgcozje"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusuvEWfPATGJbEdKAWLyIsdg"><span style="font-size: 16px;">8.1 What is the Detrended Price Oscillator?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusaXMOPxbDLN8AwXd1fGZiCb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus7dUzJOS1qdn6Itbu8qkogc"><span style="font-size: 16px;">DPO is an oscillator designed to remove longer-term price trends and focus on shorter-term price cycles. It compares historical closing prices with a displaced simple moving average to help identify cyclical highs and lows.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusSTIWoEfasfmIoBXk3aCFPc"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusXXbpJczbhzeq2RLl2LFtKd"><span style="font-size: 16px;">8.2 What is the DPO formula?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusNbCjbXi88okrakS1cEYind"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8scLuE2GTe3TUevifO36Wh"><span style="font-size: 16px;">DPO = Closing price from (X / 2 + 1) periods ago − Current X-period SMA.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus4hoR1qbrqpBlqPB88qK67g"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIliIPRUoUhe6Bbn09Y7Ypb"><span style="font-size: 16px;">For a 20-period setting, subtract the 20-period SMA value from the closing price 11 periods ago.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusaOXnXXKawKkQwYDTIahpyb"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusKr7ZhkLLJu9KcRbM40YC1g"><span style="font-size: 16px;">8.3 How can DPO be used in trading?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8d23RHvr2aEmfJQUp1fpo5"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiKCU9lrG8DfX9RO4bFDeHh"><span style="font-size: 16px;">Common approaches include examining historical zero-line crossovers as potential buying or selling indications, measuring cycle intervals to estimate potential future highs and lows, and assessing potential exits near overbought levels or entries near oversold levels. These are historical cycle references, not standalone real-time signals, and should be checked against other indicators.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusNe1bQa01T9Q9yo066e8skf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusfh4sExnILpBgC1zVrfhu1d"><span style="font-size: 16px;">8.4 What trading strategies use DPO?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusX8xWoXusnrQPlaW1HGTW5f"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusKCW5FOUwOhy1wIJa8bk0qc"><span style="font-size: 16px;">Three common approaches combine zero-line crossovers with candlestick confirmation, use estimated cycle lengths to assess entry and exit timing, or use volume to filter setups. Regardless of the approach, use stop-loss orders and control position size.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusoYi3X971sIADKzu8SyQJjf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuspM67zqqduso5jxhaPXAszw"><span style="font-size: 16px;">8.5 What are the best DPO settings?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxuszlajtHNmTjDOoXQIFeswNu"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusB5PvXY0JThFoUHOdk7gkah"><span style="font-size: 16px;">There is no universally best setting. A common default is 20 periods. Short-term traders may use a shorter lookback, while medium- to long-term analysis may use a longer one. Backtest settings to assess their suitability for your instrument, chart timeframe, and trading style.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuszVquEVJJZRudPG8kauEI0d"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusStM2pgR5Gzavsj0p6vm6Yc"><span style="font-size: 16px;">8.6 Is DPO a momentum indicator?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusweEyRHWP8WnxhD31KGGDle"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusLL5fdfcTX501bkc3VkBgtc"><span style="font-size: 16px;">No. In its centered form, DPO is displaced into the past and does not measure the latest price momentum. It is designed to identify price cycles rather than the speed of price increases or decreases.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswGe5O3aR9aSSm7E2P6PwZc"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusGEmdfgQHtX5ZLrme9jMFyb"><span style="font-size: 16px;">8.7 Can DPO be used on its own to make buy or sell decisions?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiHDTm6hNPzEyAVFM7tap2e"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswkuzuTmjcL51KGNvXoLuyd"><span style="font-size: 16px;">It is not recommended. DPO is backward-looking and does not establish trend direction, so relying on it alone can lead to misinterpretation. Use it as a supporting tool alongside trend indicators, volume indicators, and price patterns.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusneSXi6yuLi0O69hL89JQqh"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus66jxyLeYpHW0RoP4Ckmflm"><span style="font-size: 16px;">8.8 Is DPO available on MEXC?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus4ncYg8oUbD5SHHiMdlPmxe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusM5OLLY6dPsiD7JGSJxKEJb"><span style="font-size: 16px;">Yes. MEXC's U.S. stock charting tools support DPO and other technical indicators. Users can customize the parameters and combine the indicator with other analysis tools when developing a trading strategy.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusNuDOGTSuJwn4YRe2A7t6hd"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusgqBRHRcPevubEg3ViRXkge"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusJzOasP9D5yU73ZGhIThHle" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-dbcd-in-u-s-stock-trading-493141126951843840" style="font-size: 16px;">How to Use DBCD in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusHAab6Whehn0P1Aw4CSf5mc" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-adtm-indicator-in-u-s-stock-trading-490185227379520512" data-lark-is-custom="true" style="font-size: 16px;">How to Use the ADTM Indicator in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusiRlh4xIUQOcb8pWgijCoTe" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-price-oscillator-priceosc-in-u-s-stock-trading-488101266297817088" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Price Oscillator (PRICEOSC) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusGKLU1PX8ln3rcGRQDkcAge" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-displaced-moving-average-dma-in-trading-447820795253059584" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Displaced Moving Average (DMA) in Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus87zRpQcZLHousm6KLNAWRc" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-directional-movement-index-dmi-in-trading-437460810149061632" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Directional Movement Index (DMI) in Trading</a></div></li></ul></div>

<div data-page-id="L8E9dYOMGo0bmFxug9buTDJasEh" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxusEMlubcn3YUdBfh43RqiJgc"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusXXl8lAJqec0tgicuUxta9g" data-list="bullet"><div><span style="font-size: 16px;">DBCD is a trend indicator derived from the Bias Ratio (BIAS), with smoother lines and clearer signals.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusfcMRGmuyrCx5b3Yxmuscxc" data-list="bullet"><div><span style="font-size: 16px;">DBCD calculates and smooths the differences between BIAS values across periods, helping filter out short-term market noise.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusAKBw7Ca4YgVcjDgXr1a9ug" data-list="bullet"><div><span style="font-size: 16px;">Golden crosses and death crosses are commonly used DBCD trading signals, while its position relative to the zero line helps assess bullish and bearish momentum.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusdvoUkHumh6CrdNVwOSP4lc" data-list="bullet"><div><span style="font-size: 16px;">Bearish and bullish divergence may help identify potential price tops and bottoms.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusRu3TXD7GeTcIiRWx7HoD8g" data-list="bullet"><div><span style="font-size: 16px;">MEXC users can combine DBCD with volume indicators and other tools to make more informed trading decisions.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusEby4kXD2BYTuh34V2Ksxrh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus7cUMZUSzeWKykeGTcsFPip"><strong>1. What Is the DBCD Indicator?</strong></h2><div class="ace-line ace-line old-record-id-doxusqmUVzO6PR0F4lTIWxP7WHg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusri50yshsmralXKrYhXiUIf"><span style="font-size: 16px;">Bias Convergence Diverge (DBCD) is a momentum-based technical indicator derived from the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-bias-ratio-bias-in-trading-432486920192694272">Bias Ratio (BIAS)</a>. It shares similar principles, construction methods, and applications with BIAS. By combining moving averages with exponential smoothing, DBCD measures the differences between BIAS values across periods to help identify underlying price momentum and potential trend reversals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYRkgOMKjDQMenKt4vrKUKh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusP98iIXL8jYNc6geDBQk5ac"><span style="font-size: 16px;">Compared with traditional BIAS, DBCD aims to stay closely aligned with price movements while producing smoother lines and clearer signals. This helps reduce the market noise caused by short-term fluctuations. For users new to technical analysis, its smoother readings can make DBCD a relatively accessible starting point.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusL7T4r6JX1U4EIuQB990cTg"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"97f4ef2e-1788-4046-a902-805409f3ffc2","height":1410,"width":2938,"currHeight":1410,"currWidth":2938,"natrualHeight":1410,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FDY4Fb60VkoNW3CxoZe5uX5UTs6d%2F%3Fpreview_type%3D16","file_token":"DY4Fb60VkoNW3CxoZe5uX5UTs6d","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlg8Zi9sKrSwA0mMzK6tLJV5c"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F202610271059203596Hu74G9HA0Q9X6.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJEWTRGYjYwVmtvTlczQ3hvWmU1dVg1VVRzNmQiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGc4Wmk5c0tyU3dBMG1Neks2dExKVjVjIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9EWTRGYjYwVmtvTlczQ3hvWmU1dVg1VVRzNmQvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/DY4Fb60VkoNW3CxoZe5uX5UTs6d/?mount_node_token=doxlg8Zi9sKrSwA0mMzK6tLJV5c&mount_point=docx_image" data-width="2938" data-height="1410" data-lark-image-uri="drivetoken://DY4Fb60VkoNW3CxoZe5uX5UTs6d" data-lark-image-width="2938" data-lark-image-height="1410" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxussG5IHTBwwoLqlXNfmYQoyf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusWCqkMW84spJBToyWzMw2Vb"><strong>2. Key DBCD Trading Signals: Golden Crosses and Death Crosses</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusL3VBBCxfnav8VUSxSWDEcc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusB7sOkkC4Zw35qRcAYQTHkd"><span style="font-size: 16px;">A <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-golden-cross-and-death-cross-signals-in-trading-458446716142076928">golden cross</a> occurs when the faster DBCD line crosses above the slower signal line. It is generally considered a potential buy signal, suggesting that bullish momentum may be gaining strength. When it occurs near or below the zero line, it may provide a stronger indication of a potential trend reversal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFc16mPXMKLYJ4wPg7TToMR"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfKZ47NbXpGfdoWkeDtmC7e"><span style="font-size: 16px;">A death cross occurs when the faster DBCD line crosses below the signal line. It is generally considered a potential sell signal, suggesting that bearish pressure is increasing and bullish momentum is fading. When it occurs above the zero line, traders should pay closer attention to the possibility of a price top and subsequent pullback.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvty6nOJCBS3tYMKW6zC57C"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusxJ0E6glRWJSOQJzjOX7Jcf"><span style="font-size: 16px;">The zero line is also an important reference point. When DBCD stays above zero and the price remains above a key moving average, this may indicate an ongoing uptrend, during which traders may consider holding their positions in line with the trend. Conversely, a prolonged period below zero may suggest that a bearish trend is continuing.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusKv3Qi9qhW4Z6bF1LBTlQWf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusQReQF3MIeWKzytRq01J6Ha"><strong>3. Using Convergence and Divergence to Identify Potential Tops and Bottoms</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusU7H3KBNdCD9ZZeYpDMidNe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswCDhvMpxwrps0UlA9YNKJf"><span style="font-size: 16px;">Divergence is one of DBCD's key applications. Bearish divergence occurs when the price makes higher highs during an uptrend, while DBCD forms progressively lower peaks and moves back toward zero. This suggests that the underlying bullish momentum is weakening and may warn of a potential price top, prompting traders to consider reducing their positions. Bullish divergence is the opposite: the price makes lower lows during a downtrend, while DBCD gradually rises toward zero. This may indicate a shift in the balance between buying and selling pressure, with bearish momentum weakening and a potential bottom approaching.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusivpG6eZ8sIkCggIXtLFF2b"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusz91hlXSLfXguG875AJa9Gd"><span style="font-size: 16px;">Even when bullish divergence appears in a clear downtrend, traders considering a potential bottom should use small positions and keep return expectations modest. If the price encounters resistance at a key moving average or DBCD forms a death cross, consider taking profits rather than waiting for a larger rebound.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusByv61YkhZhdTJBosCe70nf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusLGNkT4tHqbYxZufGUkJLhe"><strong>4. How to Add DBCD to a U.S. Stock Chart on MEXC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIj4hjBWJyu7JrhepkYab9c"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQ6SuiYfeXkIIwT0mgsp89b"><span style="font-size: 16px;"><a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>'s U.S. stock trading charts support adding and configuring DBCD. Follow these steps:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXCAyB1S2vPuAhawtdEQEcg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusH19tNInpGx3p6fa6Zz3Gxb"><span style="font-size: 16px;">1) Log in to your account, go to the U.S. stock trading page, and open the price chart for your chosen stock.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6uX1lbxg4fD4wbxoh626nb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvxvi9IStYHHj5YFUKwo7vc"><span style="font-size: 16px;">2) Click the indicator button above the chart. In the Indicator Loading panel, search for and select DBCD.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusV8bT7KbQPdA69mrzdv0M6d"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHKGqm59RF3kxd508Cg6FMY"><span style="font-size: 16px;">3) Once the indicator is added, adjust the period parameters to suit your trading preferences. The chart will display the indicator lines automatically. Beginners are advised to start with the default settings on the daily chart and become familiar with the indicator before customizing its parameters.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdNpinWv6s0Bi2BzpaF182d"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxushsCUbx6ChznWXEqbCYd7zf"><span style="font-size: 16px;">*BTN-<strong>Trade U.S. Stocks</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">https://www.mexc.com/zh-MY/trade-stocks</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus1MVr4WS71hlzW5NTANlURg"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"c2e7fa0a-7088-42ee-9405-fb87a2ed3822","height":1406,"width":2938,"currHeight":1406,"currWidth":2938,"natrualHeight":1406,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FW3bdbJ4USo3ZFKxt1JZum4Qvslc%2F%3Fpreview_type%3D16","file_token":"W3bdbJ4USo3ZFKxt1JZum4Qvslc","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlg4tyxSFqDMg1uVwSDcuVLdd"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261027105917429J9rQadtFM5GqhZ.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJXM2JkYko0VVNvM1pGS3h0MUpadW00UXZzbGMiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGc0dHl4U0ZxRE1nMXVWd1NEY3VWTGRkIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9XM2JkYko0VVNvM1pGS3h0MUpadW00UXZzbGMvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/W3bdbJ4USo3ZFKxt1JZum4Qvslc/?mount_node_token=doxlg4tyxSFqDMg1uVwSDcuVLdd&mount_point=docx_image" data-width="2938" data-height="1406" data-lark-image-uri="drivetoken://W3bdbJ4USo3ZFKxt1JZum4Qvslc" data-lark-image-width="2938" data-lark-image-height="1406" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiMtDG4Ahp3mtTb6CCsJmhZ"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus3kWjaUU63XHONNqXwtWKUc"><strong>5. Practical Tips for Using DBCD</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusN8V89JdK3d8742QnzPaIEc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusLGwXY4IcTP6IWv7abVnLAd"><span style="font-size: 16px;">When using DBCD, beginners should keep the following points in mind:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuszsYcHIU6zszbVBJqqSpj8F"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusNHl7uV41kdlHPjpBETKcQe"><span style="font-size: 16px;">1) DBCD is a smoothed indicator and therefore has some lag. During sharp price moves or prolonged sideways trading, it may produce delayed or misleading crossover signals. Use <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-moving-average-of-volume-in-trading-421863713722995712">volume indicators</a> and the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-relative-strength-index-rsi-in-trading-425570029981283328">Relative Strength Index (RSI)</a> for additional confirmation.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswwWYKI9koNKXUivAYDrBsh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus1x1pIZhurVhvEnq7dj8XXf"><span style="font-size: 16px;">2) DBCD golden crosses and death crosses may be more useful in bearish or range-bound markets. In strongly directional markets, a trend-following approach should take priority.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus9EN5GAYseUWIdO99nyPw5Y"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFVylXjzLJ7r359EEMXkemK"><span style="font-size: 16px;">3) Signals on daily and weekly charts tend to be more reliable than those on shorter timeframes. They can help identify broader price trends and filter out intraday market noise.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxussx554C1hBHQHCezWDP8B5e"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusPrs2a3ieCcZFiBIFhkLOTg"><span style="font-size: 16px;">4) No single indicator can guarantee profits. Appropriate position sizing and stop-loss orders remain fundamental to risk management.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusaqDTKmZGtQDfdCyYaq2a4f"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusQFVWvYxxx4G9wvlSqZ8c5c"><strong>6. DBCD FAQ</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxus0HTtl6hprV4NtfuBbDCfNc"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuscezsTnXgpDAx0I0XU5zkyg"><span style="font-size: 16px;">6.1 What is the DBCD indicator?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYKIuDRD82GJXJhRngwbq4d"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusCAEOIB58wT2NAn53ZqZnfh"><span style="font-size: 16px;">DBCD is a trend indicator derived from BIAS. It calculates the differences between BIAS values across periods and applies exponential smoothing to help identify price trends and potential reversals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiEfclReBcm5IyKRc8xBV2e"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusspWHX7Om6vBE9XGv1BWO8e"><span style="font-size: 16px;">6.2 What do convergence and divergence mean in technical analysis?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxuslBSxVzbQV0gC69puaSOP6e"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFvmB3TPBTRkLYRfB4Md4Cd"><span style="font-size: 16px;">Convergence refers to the indicator and price moving more closely together or to a narrowing difference between the values being compared. In the context of DBCD moving toward zero, this may suggest that momentum is weakening. Divergence occurs when the price and indicator move in different directions, which may signal a potential trend reversal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFhySZe0ONKdlzoHZRRuEFe"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuspe1TrcKGmgQM5C3pL6gZub"><span style="font-size: 16px;">6.3 How can I assess the degree of convergence?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusR4n2KJ3BVanbZQyT1W702N"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfMqd3170MIafs4TAyTUcgb"><span style="font-size: 16px;">Observe how quickly and how far DBCD moves back toward zero. The closer it gets to zero, with progressively smaller peaks and troughs, the greater the convergence and the weaker the momentum behind the existing trend may be.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMjuoZqmgy9W0uxfs6nFPlh"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuseEGTi2433Z7cUZzRVxNazf"><span style="font-size: 16px;">6.4 What does BIAS convergence mean?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusoy9f9OxH83NHZOlIEuoCth"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusxG8c8ji3zbpMRWYYO1t6mc"><span style="font-size: 16px;">BIAS convergence means that the gap between the price and its <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-simple-moving-average-sma-in-trading-456004357219401728">moving average</a> is gradually narrowing. This indicates that the price is moving back toward its average and that short-term overbought or oversold conditions are easing.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHFsNvIukcnyxLtXHU6EwWd"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusoREVpxHX5dwqZt72zrvEWc"><span style="font-size: 16px;">6.5 How can I assess the reliability of a divergence signal?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusRiVYuo6R5cjeTWiHDBuuCh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus0Sv43p6spJS5mBB8GMutWb"><span style="font-size: 16px;">A divergence signal can fail on its own. Check it against changes in volume, the price's position relative to key moving averages, and the trend on higher timeframes. Agreement between multiple signals may provide stronger confirmation.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgQ3Ex8aADV7ULZSqVKo3fb"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusQe0FFzKBqLuibhN95zgFOf"><span style="font-size: 16px;">6.6 Which market conditions is DBCD suited to?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusntaLL0dU36SEeVOkqsZcMb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFpUAWy2NoNBOWr9ZsDhhsf"><span style="font-size: 16px;">DBCD golden crosses and death crosses may be more useful in bearish or range-bound markets. In trending markets, its position relative to zero and its divergence signals are better suited to assessing whether a trend is continuing or losing momentum.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuseb5OMsIRdfwKYHXu0gLNlf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus5wmKngF5fOtPv8wiZFbxHh"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusY18UIHe0VaOzMVUgywuZ9c" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-adtm-indicator-in-u-s-stock-trading-490185227379520512" style="font-size: 16px;">How to Use the ADTM Indicator in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxust3uz4O82N3BvdlxRFLhOPe" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-price-oscillator-priceosc-in-u-s-stock-trading-488101266297817088" data-lark-is-custom="true" style="font-size: 16px;">How to Use the Price Oscillator (PRICEOSC) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusn10epyHsqLiFsU5egCuvaf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-ddi-in-u-s-stock-trading-487191703893661696" data-lark-is-custom="true" style="font-size: 16px;">How to Use DDI in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusxbC3YyzIR5sACHJZv0CYag" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-support-and-resistance-levels-in-trading-462151469032291328" data-lark-is-custom="true" style="font-size: 16px;">How to Use Support and Resistance Levels in Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusOoWqvxO0dSD0cyCebhKpbf" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-trade-the-dead-cat-bounce-pattern-461195228923544576" data-lark-is-custom="true" style="font-size: 16px;">How to Trade the Dead Cat Bounce Pattern</a></div></li></ul></div>

<div data-page-id="JvnAdjEEio1OdDx6v5hu4xESssf" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxussOBvHzQMZjrQ2QtVql5GIc"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusVGLoDc6lDfpTlTECL4VKvd" data-list="bullet"><div><span style="font-size: 16px;">The ADTM indicator compares upward and downward price movements relative to opening prices to assess the balance of buying and selling momentum.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusBMEujFVHyxQai1Po264kLh" data-list="bullet"><div><span style="font-size: 16px;">The indicator ranges from −1 to +1. Readings below −0.5 are conventionally described as a "low-risk zone," while readings above 0.5 are described as a "high-risk zone." These labels are reference points, not measures of actual investment risk.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus3onblCnwdIQm65DkRfDkBs" data-list="bullet"><div><span style="font-size: 16px;">Crossovers between ADTM and its moving average are its main trading signals: a crossover above may indicate a buying opportunity, while a crossover below may indicate a selling opportunity.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuspcdxRecQ2tbFVYvrYW19of" data-list="bullet"><div><span style="font-size: 16px;">The classic ADTM settings use a 23-day summation period and an 8-day signal moving average, with the indicator generally used on daily charts and higher timeframes.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusk86ifHlrZZcaDRYJsWugJd" data-list="bullet"><div><span style="font-size: 16px;">MEXC users can combine ADTM with price-volume analysis, support and resistance levels, and build a more comprehensive trading approach.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxus5I80t5XEzImFWgASVQDqsg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusvoEO0ga7yvrS20ue1BtSpf"><strong>1. What Is the ADTM Indicator?</strong></h2><div class="ace-line ace-line old-record-id-doxusMZXs8uNpxtuY0ih1liVpXg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusPS0ZLZkoo4CE5jRzW3bm6c"><span style="font-size: 16px;">The Adaptive Dynamic Trading Money Flow Index (ADTM) is a technical indicator used to analyze momentum and potential reversals. It compares upward and downward price movements relative to opening prices to assess the balance of buying and selling momentum. By considering changes in opening prices and subsequent price movements, it expresses this balance within a fixed range of −1 to +1.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuslkNfrqhL9JKwIutAOtSF6b"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMO31dmsvYYN805cc24PJvc"><span style="font-size: 16px;">Unlike oscillators that rely primarily on closing prices, ADTM focuses on the opening price relative to the previous trading day's opening price, as well as the day's high and low. This approach can help traders examine intraday changes in price momentum and identify potential weakening in buying or selling pressure.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQLbs4ZjBtwYx9jADVr8lwd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusoeAq6jtJ4eHkxMXVVIrfEe"><strong>2. How to Interpret ADTM Trading Signals</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusmH5SIBgu12oUYxrnOu39eg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusDlv5DasTUYXStr365mq6bd"><span style="font-size: 16px;"><strong>Moving average crossovers:</strong> When ADTM crosses above its moving average, it forms a <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-golden-cross-and-death-cross-signals-in-trading-458446716142076928">golden cross</a>, which may indicate a buying opportunity. When it crosses below its moving average, it forms a death cross, which may indicate a selling opportunity.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxussluDwm2YitSoykoxOyQYhe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8HrTc1eqYovRMegJdJeUve"><span style="font-size: 16px;"><strong>High-risk zone:</strong> A reading above 0.5 falls within what is conventionally called the high-risk zone. It suggests strong upward momentum that may leave prices vulnerable to a pullback. Traders may consider taking profits or reducing exposure rather than chasing rising prices.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusSHKMp5apRFgibIpqAQ5BHc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus5jHr8ool8LjVQlgdH3Dkn9"><span style="font-size: 16px;"><strong>Low-risk zone:</strong> A reading below −0.5 falls within what is conventionally called the low-risk zone. It suggests strong downward momentum that may be approaching exhaustion. Traders may watch for signs that prices are stabilizing or reversing before considering gradual entries; the zone label does not mean that buying is inherently low risk.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus1wlTHzmmubgCZ23ZaWutKd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusnqutqzRLITUfj0fkEeKInb"><span style="font-size: 16px;"><strong>Zero-line signals:</strong> The zero line separates positive and negative readings. Values above zero indicate stronger buying momentum, while values below zero indicate stronger selling momentum. Crossings around zero may suggest a shift in that balance.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusR1NbGPsGMvdq4zq6IzBSWe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusOFxwviDiak7FbuaoyNOePf"><span style="font-size: 16px;">In practice, beginners can consider these signals together. For example, a golden cross in the low-risk zone may provide a stronger potential buying signal than a crossover alone. A death cross in the high-risk zone may provide a stronger potential selling signal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuspfda8IoU7Ht6zihg4RDoVg"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"117877e4-5da3-4d69-a549-1ac271e2983e","height":1412,"width":2938,"currHeight":1412,"currWidth":2938,"natrualHeight":1412,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FPbcObGX7cocZh8xYZ50u2Khlspc%2F%3Fpreview_type%3D16","file_token":"PbcObGX7cocZh8xYZ50u2Khlspc","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgj0jHpTWJ0UI8iTuRX9OjKe"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261023112402981bL9cEJb9fzNeEI.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJQYmNPYkdYN2NvY1poOHhZWjUwdTJLaGxzcGMiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdqMGpIcFRXSjBVSThpVHVSWDlPaktlIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9QYmNPYkdYN2NvY1poOHhZWjUwdTJLaGxzcGMvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/PbcObGX7cocZh8xYZ50u2Khlspc/?mount_node_token=doxlgj0jHpTWJ0UI8iTuRX9OjKe&mount_point=docx_image" data-width="2938" data-height="1412" data-lark-image-uri="drivetoken://PbcObGX7cocZh8xYZ50u2Khlspc" data-lark-image-width="2938" data-lark-image-height="1412" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusupIcsGOhegaKO46L1vtmkG"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus7cIclbSQlFWsI3UB1sX9pb"><strong>3. Practical Tips for Using ADTM on MEXC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswmbPMuGNUZtVxqta4J5Fwh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuseDjQTb2ZLrjJUw3ITYE6dh"><span style="font-size: 16px;">ADTM can be applied across markets, including U.S. stocks, cryptocurrencies, commodity futures, and forex. Consider the following principles when using it:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8VOhFAkPqcIFwR3KWT8ipF"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxust1XBxMMSDEhORbxT14Fg29"><span style="font-size: 16px;">1) Prioritize daily charts and higher timeframes to help filter out intraday market noise during consolidation.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusFGbJr7AKMGSXRq3VyORMVc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuscgPSwyjocA1ylvo4fiso7g"><span style="font-size: 16px;">2) When using shorter timeframes, such as 1-hour or 4-hour charts, consider the broader trend on higher timeframes.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgyR49BmI2dGjEK7jCi1gae"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswRt9yEXt5GmmgkxEDVpAVe"><span style="font-size: 16px;">3) Assess crossovers alongside the indicator's position within its reference zones, rather than chasing upward moves in the high-risk zone.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus36lZ18RbWWzbFzd8PF0MZc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusSSToUrNU2AZ6dznvzaV6Ic"><span style="font-size: 16px;">4) Combine indicator signals with price and volume analysis, key support and resistance levels, and disciplined money management.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusRjG8TScPtmgq7dXHCrJaTh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6GqvoxWVAwTimdLmLl6m7e"><span style="font-size: 16px;">The charting tools available for U.S. stocks on <a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a> allow users to examine price structure and cross-check it against indicator signals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusTtlxeRl9b70tguJF1dOSte"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusVcU5XA6LmRJWTaklxxqGmh"><span style="font-size: 16px;">*BTN-<strong>Trade U.S. Stocks</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">https://www.mexc.com/trade-stocks</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus9SxceGbzCFDKLCHD4FnbXb"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"e7fc81bf-2cae-4f62-90de-ce8f8d628cec","height":1414,"width":2938,"currHeight":1414,"currWidth":2938,"natrualHeight":1414,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FJj5dbR6xAof0cpx6JXQuWtG2s7g%2F%3Fpreview_type%3D16","file_token":"Jj5dbR6xAof0cpx6JXQuWtG2s7g","image_type":"image/jpeg","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgePclrhnWRw7nCXTQL5Hwfg"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F202610231123568063Um7cZEfWoW43y.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJKajVkYlI2eEFvZjBjcHg2SlhRdVd0RzJzN2ciLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdlUGNscmhuV1J3N25DWFRRTDVId2ZnIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9KajVkYlI2eEFvZjBjcHg2SlhRdVd0RzJzN2cvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Jj5dbR6xAof0cpx6JXQuWtG2s7g/?mount_node_token=doxlgePclrhnWRw7nCXTQL5Hwfg&mount_point=docx_image" data-width="2938" data-height="1414" data-lark-image-uri="drivetoken://Jj5dbR6xAof0cpx6JXQuWtG2s7g" data-lark-image-width="2938" data-lark-image-height="1414" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusn1Bh3lcH5fBgv2J06skCte"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusME5quIkZXI1RMPNUGpWdeh"><strong>4. Advantages and Limitations of ADTM</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdAWULTjLujaYKAoJatAMRc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusDbmt909q7i0WWp47DfXeMb"><span style="font-size: 16px;">Advantages of ADTM: Its opening-price-based approach helps traders assess intraday momentum and identify potential exhaustion in buying or selling pressure. Its moving average crossovers and defined upper and lower reference zones provide a clear framework that can be accessible to beginners.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusRtNS1HDNgkzYRkzbqnF70g"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZL3TB3aH6j6neoibEMAdwg"><span style="font-size: 16px;">Limitations of ADTM: No technical indicator can predict market movements with complete accuracy. During strong directional trends, readings can remain in the high-risk or low-risk zones for extended periods, and crossovers may reverse repeatedly. MEXC encourages users to incorporate ADTM into a broader trading system and apply appropriate position sizing and risk management.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusAPE5Eng5F2xMu3w8J4jfgc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusgJhNyfP9LUXgSonVTbwCrb"><strong>5. ADTM Indicator FAQ</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusRAH6aSSTt0yaoP1Jn5OSQe"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusCoddStaSAbDpqo7arxpggd"><span style="font-size: 16px;">5.1 What is the ADTM indicator?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus15B4KRQJdZz4ORxZGy2vtC"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusz3ESiqg4Bo5eav80IVZxih"><span style="font-size: 16px;">ADTM, also known as the Adaptive Dynamic Trading Money Flow Index, compares upward and downward price movements relative to opening prices to assess buying and selling momentum. Its readings range from −1 to +1.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuspQQxSO4H6cstZ0NH4QWz1c"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusj93wEDr4oyap7lcSMbm2Jb"><span style="font-size: 16px;">5.2 How do I read ADTM trading signals?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZ6eYgRnzF5RoPuDkmHnJGe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiN5ELpYD6JL90TPqjc2Rqc"><span style="font-size: 16px;">A crossover above the moving average may indicate a buying opportunity, while a crossover below may indicate a selling opportunity. Readings below −0.5 fall within the conventional low-risk zone, where traders may watch for potential buying opportunities. Readings above 0.5 fall within the high-risk zone, where traders should be alert to potential pullbacks.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusoNs4HEeSFohjwo8iUlxBwP"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusEo9XFLCs81nXbqHuSbN6Vg"><span style="font-size: 16px;">5.3 How does ADTM differ from the AD indicator?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJSD0ju9s5Ttlp71ZL6gDnc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusYASQFP9eyg2ubKcru4cYTj"><span style="font-size: 16px;">The Accumulation/Distribution (AD) line combines volume with the closing price's position within the day's price range. ADTM instead uses price movements relative to opening prices and changes from the previous day's opening price, focusing on buying and selling momentum after the market opens.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusRxRxUK40JekDJpnNmCliog"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusgea2E41ROJqHV8HHdcDzHb"><span style="font-size: 16px;">5.4 What are the best ADTM settings?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxustlAtw7xHQkbgkxGTRI6IKh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjDkIxBiJXpmtKerSw3gNpe"><span style="font-size: 16px;">The classic default settings use a 23-day summation period and an 8-day signal moving average. Beginners can start with these settings and adjust them to suit their trading timeframe as they become more familiar with the indicator.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusrOGUpezC7etuE6FX7klFLg"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxus93anq7ClyyInOMcGzXkHzb"><span style="font-size: 16px;">5.5 What does ADT mean in time references? Is it related to ADTM?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusuMxCJVVwZOYiLuIVO13VVc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHKxkWfBb30GQWQFZ4YqlAd"><span style="font-size: 16px;">In time references, ADT usually stands for Atlantic Daylight Time. It is a time zone abbreviation and is unrelated to the ADTM trading indicator.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusEhc9SgEw5C2KI43MwDJxag"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusmlAghVjlSeOLKrbsPqXaIe"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusriCuxDsxqscgLtDXVhK4qW" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-price-oscillator-priceosc-in-u-s-stock-trading-488101266297817088" style="font-size: 16px;">How to Use the Price Oscillator (PRICEOSC) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuscxvna0JPmNH3GlLLAeKRpb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-ddi-in-u-s-stock-trading-487191703893661696" data-lark-is-custom="true" style="font-size: 16px;">How to Use DDI in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusUqSkhHtoCSOJqHNex0jWNS" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-mike-indicator-in-u-s-stock-trading-485036480714594304" data-lark-is-custom="true" style="font-size: 16px;">How to Use the MIKE Indicator in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusuvLrfPC1hheAT1AHHyHlqb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-tradingview-on-mexc-466637656862259200" data-lark-is-custom="true" style="font-size: 16px;">How to Use TradingView on MEXC</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuskaMogjjIzPetreDdAX50ge" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-fibonacci-retracement-in-trading-462148325116231680" data-lark-is-custom="true" style="font-size: 16px;">How to Use Fibonacci Retracement in Trading</a></div></li></ul><div class="ace-line ace-line old-record-id-DWcDd4mE1oO8z1xrTFYuDmsLsZb"><br></div></div>

<div data-page-id="GeOydGVuWowaVpxvTa6uIw1EsCc" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxusmgzBHiFlOzHQasUwSLGYzf"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusKACoCyxMMf61kw32mIG2cd" data-list="bullet"><div><span style="font-size: 16px;">The Price Oscillator is a moving average-based momentum indicator that measures the difference between two moving averages with different periods.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusPbjAUAsjCKnkLd34bwz4Zd" data-list="bullet"><div><span style="font-size: 16px;">It expresses the difference between a short-term and a long-term moving average as a percentage, making it easier to compare assets.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusMz0s4xoZtlX6MYaME6i0wd" data-list="bullet"><div><span style="font-size: 16px;">Its two main applications are identifying market trend direction and buy and sell signals.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusc7Vi0dSI0gcErtHVCLOhAg" data-list="bullet"><div><span style="font-size: 16px;">Zero-line crossovers, divergences, and threshold-based assessments are the three most commonly used methods for identifying signals.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuspgsmhQdGyOoljoYV0Ik02e" data-list="bullet"><div><span style="font-size: 16px;">When trading on MEXC, users can combine the Price Oscillator with tools such as the Relative Strength Index to improve the accuracy of their decisions.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxusOGhzJybNS91ZmpQLty2qre"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusPWw5oxULwiQ5JvYmLjotqf"><strong>1. What Is the Price Oscillator?</strong></h2><div class="ace-line ace-line old-record-id-doxusxIjUTFKCEXZcDj3OtYOr8b"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXzgeTO5SMQGq1RTuaDcEKf"><span style="font-size: 16px;">The Price Oscillator (PRICEOSC), also known as the Percentage Price Oscillator (PPO), is a moving average-based momentum indicator that measures the difference between two moving averages with different periods. Technical analyst Gerald Appel laid the theoretical foundation for this type of indicator in the late 1970s. He also created the well-known <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-macd-indicator-in-trading-426304203100942336">Moving Average Convergence Divergence</a> (MACD) indicator.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusI8AP23zoDMl7CBnrEFpLlb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXQ3WaAPJn9uemRi8gSRXzb"><span style="font-size: 16px;">The Price Oscillator compares the short-term and long-term moving averages of closing prices, with the difference fluctuating around zero. When the short-term moving average is above the long-term moving average, the indicator is positive, reflecting upward momentum. When the short-term moving average is below the long-term moving average, the indicator is negative, reflecting downward momentum.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusT7OOD7SBNEBLfgUchpXu7c"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuspfucQRHp6gY6oQ6ShH7xDh"><span style="font-size: 16px;">The Price Oscillator is widely used in stock, forex, and crypto markets. Users can also add this type of oscillator to U.S. stock charts on MEXC to help assess price trends and identify entry and exit opportunities.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusw4Cv6ZZbDTloHj2HxPQzmh"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusbscIrWPLW6otGGD0INMi1f"><strong>2. How to Calculate the Price Oscillator</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqA3dgdwTRYJQqlrVILzEIg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfzdYymmn7uPaxRAXOD0IWO"><span style="font-size: 16px;">The Price Oscillator calculation involves three steps. First, subtract the long-term moving average of closing prices from the short-term moving average. Next, divide the difference by the short-term moving average of closing prices. Finally, multiply the result by 100. The formula is:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjvBYYmqMbX6Xytnb0aaTGL"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqYGw3YnprRXClzcTVbjRCb"><strong style="font-size: 16px;">Price Oscillator = (Short-term moving average − Long-term moving average) / Short-term moving average × 100</strong></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus2JWuDFkFFVxeVtg13ulNFg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIkfQkUOy5wQlH7ksRZjjjh"><span style="font-size: 16px;">Note that the classic Percentage Price Oscillator (PPO) uses the long-term moving average as the denominator:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8ZYCGeIV0PK1NVE4AVYZAe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusocXBmoieJZFAka7HhDPHpe"><strong style="font-size: 16px;">PPO = (12-day exponential moving average − 26-day exponential moving average) / 26-day exponential moving average × 100</strong></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusj6MxStDQ6jn8WVlBSHvl2c"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJkpI7OkZFIkdb16JDBlnMb"><span style="font-size: 16px;">Although the denominators differ, both calculations follow the same underlying principle: expressing the difference between moving averages as a relative percentage so that the indicator's value is not affected by the asset's price level. In practice, the default periods are typically 12 and 26, with a 9-day <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-exponential-moving-average-indicator-in-trading-416907527621799936">exponential moving average</a> used as the signal line. Short-term traders can shorten the periods to increase sensitivity, while swing traders can use longer periods to filter market noise.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus0Rvv3fFx5Lq7vjdi4dkn0c"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusA68gNn82fW5Qe0mrAQbZoe"><strong>3. Two Main Uses of the Price Oscillator</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusg08dcKDgx1Vn4lVIQaKR8f"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuspQ5yJy5OrRrqho77qTpZDi"><span style="font-size: 16px;">3.1 Identifying market trends</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus3AzFFUF3aPB3xWVywmoL6b"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusfIH9d4OVozdZekNBqA0XPq"><span style="font-size: 16px;">When the short-term moving average is above the long-term moving average and the Price Oscillator is positive, the market is likely in an uptrend. When the short-term moving average is below the long-term moving average and the indicator is negative, the market is likely in a downtrend. The farther the reading is from zero, the stronger the momentum of the current trend.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxushVhsMYyFvycS9oLpH2bOJb"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusuya7KHHUUydeeKpG63n7Fd"><span style="font-size: 16px;">3.2 Identifying trading signals</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHDuLW9TqdIbEnE0kWg0q9g"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuskReGXyuKaebHMpRqpjGuib"><span style="font-size: 16px;">A move above zero may be a buy signal, while a move below zero may be a sell signal. Traders can also set specific thresholds. When the Price Oscillator reaches these levels, the market may be in overbought or oversold conditions, helping traders identify potential entry or exit opportunities.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusUET2ZLQ8qwCRpizqYnbpwg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxus7vjyrOv1szuAk16q0hwfTh"><strong>4. How the Price Oscillator Differs From MACD</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusBrR3Al8jfXoCGlcdfG2q6d"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdCQ7D0Z32C02hobbeEWSxh"><span style="font-size: 16px;">The MACD indicator measures the absolute difference between two moving averages. Its magnitude is affected by the asset's price level: higher-priced assets naturally tend to have larger MACD readings, while lower-priced assets tend to have smaller readings. As a result, MACD values cannot be directly compared across different assets.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusK6UvXTmJ6ygVWGemd3z53y"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusomAwONQMGx3tIc1mRJ1T8f"><span style="font-size: 16px;">The Price Oscillator converts this difference into a percentage, removing the constraint of differing price levels and allowing traders to compare momentum and volatility across assets in different price ranges. This is particularly useful for MEXC users who monitor multiple trading pairs.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus9rUUW6X6DP38FAnECIFrPg"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusHgVTDUUfKL3mUgjeGoe0Vg"><strong>5. How to Add the Price Oscillator to U.S. Stock Charts on MEXC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGVKYk4jcDi2PUuHVhBYXae"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusxXUBIPOFkhShZ2MpyjAAAc"><span style="font-size: 16px;"><a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>'s <a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">U.S. stock</a> trading interface allows users to add and configure the Price Oscillator. Follow these simple steps:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus2LokrXpObURKKWIhTUiIyZ"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvf2ujw5JKJtdOVNHrptOVd"><span style="font-size: 16px;">1) Log in to your account, go to the U.S. stock trading page, and open the price chart for your chosen stock.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusmbpLlrKPDYfheuzjKgpUEc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjEKFTLkX0nmTtue5l9xfjb"><span style="font-size: 16px;">2) Click the indicator button above the chart, then search for and select PRICEOSC in the indicator list.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuszMcOk6BEMeIAtdI5Msj90c"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbYBzJAn6mRAl2ooAhtdTiz"><span style="font-size: 16px;">3) Once added, adjust the period parameters to suit your trading preferences. The system will automatically plot the indicator on the chart. Beginners are advised to start with the default settings on a daily chart and customize them after becoming familiar with the indicator.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIq5pzbKBoCyV33YhGHuKoe"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusuFjD3WQ8AEa6wooaeTfIpc"><span style="font-size: 16px;">*BTN-<strong>Trade U.S. Stocks</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">https://www.mexc.com/trade-stocks</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbyzKff1YkMXrvAu7eCJlTe"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"7bd18ee8-54d5-4772-9d5c-85322dc21ae4","height":1426,"width":2938,"currHeight":1426,"currWidth":2938,"natrualHeight":1426,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FNnL4bixT4oL8hxxwIjZu5WvNs4e%2F%3Fpreview_type%3D16","file_token":"NnL4bixT4oL8hxxwIjZu5WvNs4e","image_type":"image/png","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgjU6S5ik8seNap8e9TULs8c"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261020160035808XTwcIyEZo6CyjK.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJObkw0Yml4VDRvTDhoeHh3SWpadTVXdk5zNGUiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdqVTZTNWlrOHNlTmFwOGU5VFVMczhjIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9Obkw0Yml4VDRvTDhoeHh3SWpadTVXdk5zNGUvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/NnL4bixT4oL8hxxwIjZu5WvNs4e/?mount_node_token=doxlgjU6S5ik8seNap8e9TULs8c&mount_point=docx_image" data-width="2938" data-height="1426" data-lark-image-uri="drivetoken://NnL4bixT4oL8hxxwIjZu5WvNs4e" data-lark-image-width="2938" data-lark-image-height="1426" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIkvPMi1eVrmj3jtSildQBc"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusL4HP0M4zPdA8htUJICmqBf"><strong>6. Price Oscillator Trading Strategies and Risk Management Tips</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusphD3e11aDzRzZCWze0qOUd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIiMlMSBRvuAXr9EaRBA8Yf"><span style="font-size: 16px;"><strong>1) Confirm the trend direction.</strong> Use a longer-term moving average to assess the broader trend. Trading in the direction of the trend can improve the win rate.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusn3TYTuYcjDEBcGzSQIlXYc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusyRGLWoIepV3JM8QPm8Kc5c"><span style="font-size: 16px;"><strong>2) Wait for signal confirmation.</strong> After a zero-line crossover, use <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-moving-average-of-volume-in-trading-421863713722995712">trading volume</a> or the Relative Strength Index for additional confirmation. For example, a buy signal that occurs when the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-relative-strength-index-rsi-in-trading-425570029981283328">Relative Strength Index</a> is in oversold territory is more reliable.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgWvQxyhNKSEEfqw8PizSig"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQPKQe6nL0we0eIwmKaqYhd"><span style="font-size: 16px;"><strong>3) Watch for divergence.</strong> If the price reaches a new high but the indicator does not, upward momentum is weakening and the market may reverse. The opposite also applies.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxushE23WzBeLajqxjijzzpbFh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusG2nFekdVKaqGuepxAc7nvc"><span style="font-size: 16px;"><strong>4) Set stop-loss levels consistently.</strong> For long positions, a stop-loss can be placed below the recent swing low. For short positions, it can be placed above the recent swing high to limit the loss on each trade.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQgXjTd30IuM4MzuSqgmIFd"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusoTlGOX4oRgLt0Jtk8Mxkhe"><strong>7. Limitations of the Price Oscillator</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHeGt0SFpvsR1fJ9Mui7xSg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjpYABiIUJZN3MuTu3McNyA"><span style="font-size: 16px;">The Price Oscillator is not an all-purpose tool:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZm1d0AkZqCi4KAuTl1q51d"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgCH1BjRLZzEHDkXjFncCH5"><span style="font-size: 16px;">1) Because it is calculated from <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-simple-moving-average-sma-in-trading-456004357219401728">moving averages</a>, it inherently lags price movements.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus3CR2CzgoU77qeyzms5VHBe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuszID34rPgnw6suSGzpL5Jce"><span style="font-size: 16px;">2) In sideways markets, the Price Oscillator may repeatedly cross the zero line, producing frequent signals driven by market noise.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus3yO8W8LEdEirfN1CgPqc7d"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus0U0JRVKTyRemREPnlRmSYg"><span style="font-size: 16px;">3) The Price Oscillator theoretically has no upper limit, making it less effective as a standalone tool for identifying overbought or oversold conditions than the Relative Strength Index or the <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-stochastic-oscillator-in-trading-427169948248728576">Stochastic Oscillator</a>.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusghewU1Gi4hPbuCut3bFFpe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZuxKKWOq9evDOKSF8a4HId"><span style="font-size: 16px;">When trading on MEXC, users are advised to combine it with tools such as trendlines and support and resistance levels, while maintaining disciplined position sizing.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGoHBIPQ4nUBfeZJE0UKIDA"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"20a005e1-6ba6-4121-a4ba-c9774661c586","height":1416,"width":2938,"currHeight":1416,"currWidth":2938,"natrualHeight":1416,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FJ6TtblJRpo0UjDxpvZyuyLdJsLe%2F%3Fpreview_type%3D16","file_token":"J6TtblJRpo0UjDxpvZyuyLdJsLe","image_type":"image/png","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgX1YfO7bgDsaqQvm6Zdhnuo"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F20261020160035820Vuw1P9CCxZxYzP.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJKNlR0YmxKUnBvMFVqRHhwdlp5dXlMZEpzTGUiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdYMVlmTzdiZ0RzYXFRdm02WmRobnVvIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9KNlR0YmxKUnBvMFVqRHhwdlp5dXlMZEpzTGUvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/J6TtblJRpo0UjDxpvZyuyLdJsLe/?mount_node_token=doxlgX1YfO7bgDsaqQvm6Zdhnuo&mount_point=docx_image" data-width="2938" data-height="1416" data-lark-image-uri="drivetoken://J6TtblJRpo0UjDxpvZyuyLdJsLe" data-lark-image-width="2938" data-lark-image-height="1416" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusgDLeLd9XQokpytAk01Pr5f"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxustBPxCy4q1H44nLQ7E3zb1d"><strong>8. Price Oscillator (PRICEOSC) FAQ</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusTtgPx2xJeJT03AUuwXW42f"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusnJAhpxk0t2huwkjSX0Hc7b"><span style="font-size: 16px;">8.1 What is the Percentage Price Oscillator (PRICEOSC)?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus9fYPm64MU9BHDISCAPOfDd"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuswBiw2Ff6SO1XUCFwlZqwNb"><span style="font-size: 16px;">The Percentage Price Oscillator is the percentage-based form of the Price Oscillator. It divides the difference between two moving averages by a reference moving average and multiplies the result by 100, allowing direct comparisons of momentum across assets with different price levels.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusiyXtiOc0g1nYObu6DUXlyc"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusQl7OZPClG90uFAq1FKj3od"><span style="font-size: 16px;">8.2 How does Price Oscillator differ from MACD?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusrJZNQKhI2ytJLOscCCRjgh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusW74hsyGweVqcHjEzYlO3Zc"><span style="font-size: 16px;">MACD expresses the difference between moving averages as an absolute value and is affected by the asset's price level. PPO expresses the difference as a percentage, allowing comparisons across assets regardless of price level and providing greater consistency in long-term analysis.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuseFbBTX6SMSPjnlBEUB0Jlf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuse3pZKiHGK8rCSMmd1qqcfb"><span style="font-size: 16px;">8.3 What trading strategies use the Price Oscillator?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdQSLqXqkQtdPzrJhYd5Z3e"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusrgfA27HCBlV7srhdJl5psf"><span style="font-size: 16px;">The main approaches are zero-line crossover strategies (buying on a crossover above zero and selling on a crossover below zero), threshold strategies (using specific readings to identify overbought or oversold conditions), and divergence strategies (anticipating reversals when price and indicator movements diverge).</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxussTNhzObx6Zt18Rf5xHEb3t"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusA3khReSExFaZrR9XNNoq2c"><span style="font-size: 16px;">8.4 What is an oscillator in trading?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusENXgIM3NYOtoy2XZy8qi5f"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGhgv1rp4zPlJYN2USP3hcl"><span style="font-size: 16px;">An oscillator is a type of technical indicator that fluctuates around a centerline or within a fixed range. Oscillators are used to measure market momentum, identify overbought and oversold conditions, and anticipate trend reversals.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusUD9CdFzFk5EG6hl9lHabgd"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusESWKwf50rOVZrDCwcmd2bG"><span style="font-size: 16px;">8.5 How do oscillators differ from other technical indicators?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusS1wTb2Wutny0RVkuIg2ARf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusduswSC5wOBv8c5rd3zpcWe"><span style="font-size: 16px;">Technical indicators include trend indicators, volume indicators, and other types, and are commonly overlaid on price charts. Oscillators are a subset of technical indicators, generally displayed in a separate pane and fluctuating around a specific value.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusDYTsM7bXaTGqHnjwsXuFZe"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusR05G2mLGYvn1NJXOgrxnjh"><span style="font-size: 16px;">8.6 How can I use the Price Oscillator on MEXC?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusbY789Uktp8Mm4ouiFBtwCh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusStzRuhk78oNvVtB0rRGZ5g"><span style="font-size: 16px;">Add the Price Oscillator from the technical indicator list on MEXC's U.S. stock charts. After setting the fast and slow periods, use zero-line crossovers, thresholds, and divergences to help inform trading decisions.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusajhrNqivseovIy2er6B8Ae"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusXYETWMybCqqEopRiBgNuVd"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusagoXuZR9LN7NlFvAj8Gl8d" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-ddi-in-u-s-stock-trading-487191703893661696" style="font-size: 16px;">How to Use DDI in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusS67otN6nh03UvbmRfHoUfh" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-mike-indicator-in-u-s-stock-trading-485036480714594304" data-lark-is-custom="true" style="font-size: 16px;">How to Use the MIKE Indicator in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusCIXiUUCIXdvhJTN4THEwje" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-keltner-channels-kc-in-u-s-stock-trading-484971308880844800" data-lark-is-custom="true" style="font-size: 16px;">How to Use Keltner Channels (KC) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusgMnsC1BHH11qCnDu5FIvYg" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-ene-in-u-s-stock-trading-484214441154009088" data-lark-is-custom="true" style="font-size: 16px;">How to Use ENE in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxus5voRQu1kwZW4h0AmacTtRh" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-tradingview-on-mexc-466637656862259200" data-lark-is-custom="true" style="font-size: 16px;">How to Use TradingView on MEXC</a></div></li></ul></div>

<div data-page-id="JSmgdQJh1otqPmxwAb8uigYlsnf" data-lark-html-role="root" data-docx-has-block-data="true"><h2 class="heading-2 ace-line old-record-id-doxuslrthpSVezhvPee85IPSfxf"><strong>Key Takeaways:</strong></h2><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusMTfq58iaVZgx7xN1MeQMJc" data-list="bullet"><div><span style="font-size: 16px;">Direction Standard Deviation Index or "Directional Deviation Index" (DDI) compares upward and downward price movements relative to the previous trading day to help identify trend direction.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusuKaTmf4imdCrPHy898UYvg" data-list="bullet"><div><span style="font-size: 16px;">DDI is calculated using changes in price highs and lows, upward directional movement, and downward directional movement.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusA7ebm0VwK8pW4bhhcDykNd" data-list="bullet"><div><span style="font-size: 16px;">A move in DDI from negative to positive may indicate a potential buying opportunity, while a move from positive to negative may indicate a potential selling opportunity.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusfOgzijru8Qt5U0LsUXB1Ib" data-list="bullet"><div><span style="font-size: 16px;">DDI can be combined with moving averages and relative strength indicators to help assess U.S. stock trading setups.</span></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusJZtAQW4Uvi9Pm2jodY3GPd" data-list="bullet"><div><span style="font-size: 16px;">MEXC users can also apply the same DDI analysis framework to crypto trading.</span></div></li></ul><div style="text-align:left" class="ace-line ace-line old-record-id-doxus3h9l1o2tFpNaUmiqTJI5dI"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusdRvht19kUuZ49LM2vQoKLc"><strong>1. What Is DDI?</strong></h2><div class="ace-line ace-line old-record-id-doxusvafsyfpV1eIG6zuBPrUQ10"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusMA57AGydAvZzgvwyVLt3Gc"><span style="font-size: 16px;">DDI is a trend indicator that compares the proportions of upward and downward stock price movements relative to the previous trading day over a given period. Moving averages are then used to smooth the indicator. Rather than focusing on potential overbought or oversold conditions, DDI emphasizes the balance between upward and downward price movements, helping traders assess whether prices are trending higher or lower.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusNFZM9FBr5UlEcJH3zhpF9c"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusWu7NmtvCzkudIg87xyYGKb"><span style="font-size: 16px;">In the U.S. stock market, individual stocks can experience substantial volatility and pronounced trends. DDI offers a visual way to assess the direction and relative dominance of upward or downward price movements, making it a useful tool for beginners learning to recognize trends.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6ut8GOiQioBEqgmSiY1rZb"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusqQmmicrZwFJtxVp1bzQ2ff"><strong>2. How to Use DDI in U.S. Stock Trading</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusa9wwGcGBl85rYkPhKg6dBg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJkm8skoxTIiK0fVnTik4Mc"><span style="font-size: 16px;">DDI can help identify potential shifts in the balance between upward and downward price movements. In practice, traders can focus on the following signals and considerations:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusODXpONBh93zqCgoZS6yjCQ"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusFPAUjy8PAGWlxQcXzGouAg"><span style="font-size: 16px;">2.1 Potential buy signals</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusKX2s4Uo3BC14aH9UfJ6zdb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusEjrNao9Dk0BN0iGeo3mf8b"><span style="font-size: 16px;"><strong>1) DDI turns from negative to positive:</strong> When DDI crosses above zero, upward directional movement outweighs downward directional movement over the calculation period. This may indicate strengthening upward momentum.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusE9REzQpBH6ULTmQXMfk0lg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusxl7LahtLCRLuWnO5uPEWAc"><span style="font-size: 16px;"><strong>2) DDI crosses above its weighted average (ADDI):</strong> When DDI crosses above ADDI to form a <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-golden-cross-and-death-cross-signals-in-trading-458446716142076928">golden cross</a>, it may indicate that short-term momentum is shifting upward. Traders may use this as supporting evidence of a potential trend beginning or continuing.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusuzMmPBL54f5GsqDScpj0Wg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuskBeQPHPMpBvdX7W2p9venc"><span style="font-size: 16px;"><strong>3) Assess the strength of the setup:</strong> If both signals occur together while the stock price rises on increasing trading volume, the combination may provide stronger support for a potential buying opportunity.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusW0b3ol410TWIR83Js3u4zf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuse4H9FjwqHxr74TlzlyZ2Jg"><span style="font-size: 16px;">2.2 Potential sell signals</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusqQLcpIJoLdTP0Atvd5AdLc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIxg4jV9N3wfX29BaLfRgdg"><span style="font-size: 16px;"><strong>1) DDI turns from positive to negative:</strong> When DDI crosses below zero, downward directional movement outweighs upward directional movement. This may suggest that an existing uptrend is weakening and a downtrend could be developing.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusZvQRFgmlH2iwdrrDq8AStg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusc9YCl6RlKEGPSOMp2Iuwmf"><span style="font-size: 16px;"><strong>2) DDI crosses below its weighted average (ADDI):</strong> When DDI crosses below ADDI to form a death cross, it may indicate weakening upward momentum. Traders holding positions may consider reducing their exposure or exiting to reassess the market.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus4jwH76hfvjEazMvUHxaouf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus2aS4K1P7huWmf9d1JF2Idh"><span style="font-size: 16px;"><strong>3) Watch for bearish divergence:</strong> If the stock price reaches a new high but DDI does not, bearish divergence forms. This may warn of a potential trend reversal, prompting traders to assess the risk of a pullback.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusJf5zym4d2g4dKYcmLmEvaf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusLd1f2DBJG2z8PcUjsr26Jf"><span style="font-size: 16px;">2.3 Important considerations</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus28ga2nrpz3GGuZAvkiJ19g"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusGlGJ4QCK5Lv4VSs8wFX9Ic"><span style="font-size: 16px;"><strong>1) Watch for market noise in sideways markets:</strong> DDI is a momentum-based trend indicator. During consolidation, it may repeatedly cross above and below zero, with frequent crossovers reflecting market noise rather than a sustained trend. Traders may reduce trading frequency and wait for a clearer trend before entering a position.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusKeF95eSh0B78TNFduoBoph"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusIWwiyUyb6ZI6w5uSi0idqh"><span style="font-size: 16px;"><strong>2) Use other tools for confirmation:</strong> Consider combining DDI with changes in <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-moving-average-of-volume-in-trading-421863713722995712">trading volume</a>, <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-simple-moving-average-sma-in-trading-456004357219401728">moving averages</a>, and <a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-bollinger-bands-in-trading-416909030860353536">Bollinger Bands</a> to identify potential support and resistance levels For example, a potential DDI buy signal may carry more weight when the stock price also holds above a key moving average.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusjnptqJnYxLiKbrinsXoJ1c"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusVmtEzI3aSfTnQqurcdUzQc"><span style="font-size: 16px;"><strong>3) Adjust parameters to your trading style:</strong> Short-term traders may shorten the calculation period to make the indicator more responsive. Medium- to long-term investors may start with the default settings to help filter short-term market noise and focus on more sustained trends.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHGSGYPHfCwn1o5ngMNMaTc"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus0qSSH34vxXTiY1eFwcbDZe"><span style="font-size: 16px;"><strong>4) Apply disciplined risk management:</strong> Any indicator signal can fail. Before entering a trade, define a stop-loss level and limit the proportion of capital allocated to the position to reduce the risk of a large loss from relying on a single signal.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusVXOuxOsxHq1VJwbuM6wxxf"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusYkg5zLXMBPYKwEc4mjKNGd"><strong>3. How to Add DDI to U.S. Stock Charts on MEXC</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusmkvI8oBRtNoAoRtailRuah"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxussR8MzxVrOiShVSS0wCSl1e"><span style="font-size: 16px;"><a data-lark-is-custom="true" href="https://www.mexc.com/">MEXC</a>'s U.S. stock trading interface allows you to add and configure DDI. Follow these steps:</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuslsIxMULNQaQ0cWKrCZuKbe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusdpK8qMAbkEcKYr0LiZzGGg"><span style="font-size: 16px;">1) Log in to your account, go to the U.S. stock trading page, and open the price chart for your chosen stock.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusaz8FFundOUULziXFVQcBVg"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQiG1KMDaRtQwy8Ifa7S5fc"><span style="font-size: 16px;">2) Click the indicator button above the chart. In the Indicator Loading panel, search for and select DDI.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusU5C4hNRyiurtPcBqGyf5Tx"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusQUOJpyd6rdbccUCfOowfHg"><span style="font-size: 16px;">3) Once added, adjust the period parameters to suit your trading approach. The indicator lines will appear automatically on the chart. Beginners can start with the default settings on a daily chart, then customize them after becoming familiar with the indicator.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusvpSHXgZmnzz9gwnMaQAuGg"><span style="font-size: 16px;"><br></span></div><div style="text-align:center" class="ace-line ace-line old-record-id-doxusspc4sjwkyf3aelu9ny4uKb"><span style="font-size: 16px;">*BTN-<strong>Trade U.S. Stocks</strong>&BTNURL=<u><a data-lark-is-custom="true" href="https://www.mexc.com/trade-stocks">https://www.mexc.com/trade-stocks</a></u>*</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus9YEO7QOepd9DlpAQaljr1f"><span style="font-size: 16px;"><br></span></div><div data-type="image" data-ace-gallery-json="{"items":[{"uuid":"9216cc68-224c-42a8-8222-bd38d1878343","height":1416,"width":2938,"currHeight":1416,"currWidth":2938,"natrualHeight":1416,"natrualWidth":2938,"pluginName":"imageUpload","scale":1,"src":"https%3A%2F%2Finternal-api-drive-stream.larksuite.com%2Fspace%2Fapi%2Fbox%2Fstream%2Fdownload%2Fpreview%2FJy88b5jYRoT9VPx4smxuSaOMsCe%2F%3Fpreview_type%3D16","file_token":"Jy88b5jYRoT9VPx4smxuSaOMsCe","image_type":"image/png","size":1,"comments":[]}]}" class="image-uploaded gallery old-record-id-doxlgfk8G1NoVrQ1emcs8qTOF7c"><img src="https://mexc-rainbown-activityimages.s3.ap-northeast-1.amazonaws.com/banner/F202610191035575209B9Vw5E6Ynwk4g.png" data-single-block="true" data-snapshot="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" data-suite="eyJmaWxlVG9rZW4iOiJKeTg4YjVqWVJvVDlWUHg0c214dVNhT01zQ2UiLCJvYmpUeXBlIjoiZG9jeCIsIm9ialRva2VuIjoiZG94bGdmazhHMU5vVnJRMWVtY3M4cVRPRjdjIiwib3JpZ2luU3JjIjoiaHR0cHM6Ly9pbnRlcm5hbC1hcGktZHJpdmUtc3RyZWFtLmxhcmtzdWl0ZS5jb20vc3BhY2UvYXBpL2JveC9zdHJlYW0vZG93bmxvYWQvcHJldmlldy9KeTg4YjVqWVJvVDlWUHg0c214dVNhT01zQ2UvP3ByZXZpZXdfdHlwZT0xNiJ9" data-src="https://internal-api-drive-stream.larksuite.com/space/api/box/stream/download/all/Jy88b5jYRoT9VPx4smxuSaOMsCe/?mount_node_token=doxlgfk8G1NoVrQ1emcs8qTOF7c&mount_point=docx_image" data-width="2938" data-height="1416" data-lark-image-uri="drivetoken://Jy88b5jYRoT9VPx4smxuSaOMsCe" data-lark-image-width="2938" data-lark-image-height="1416" data-host-from-cloud="true" style="max-width: 100%; height: auto; border-radius: 12px; font-size: 16px;"></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusHYasGkmucQZZ0Xz14EOMre"><span style="font-size: 16px;"><br></span></div><h2 class="heading-2 ace-line old-record-id-doxusUXyduWG2MJYb2EaGGDiz1d"><strong>4. DDI FAQ</strong></h2><div style="text-align:left" class="ace-line ace-line old-record-id-doxusy04FnzrfbIaz4ersZk9Bpf"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusi6J732Deh3mkwHLycxwNwf"><span style="font-size: 16px;">4.1 What is the DDI indicator</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusq8MtdkkIYePJBBg5BG4xQe"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus6jQrXbVD7TNCrZdrBZ1F0g"><span style="font-size: 16px;">DDI is a trend indicator that compares the proportions of upward and downward stock price movements. Together with its smoothed averages, it helps traders assess trend direction and the balance between upward and downward movement.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusXC81DOcwd4DCQXtTAw9kGg"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxushYvAfONdeoHHHAA6Qj7FHd"><span style="font-size: 16px;">4.2 How does DDI differ from standard deviation?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusU6daF8AVwsykF5qGkNozgb"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusP2vRgkKP2uPMHRsqDK7jde"><span style="font-size: 16px;">Standard deviation measures how widely values are dispersed around their mean. DDI instead compares upward and downward directional movement using changes in price highs and lows. Despite its name, DDI is not a measure of dispersion around a mean or a standardized deviation score.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusLDRK2x4IZ37oCBGUlUZmQg"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxuserOKFkneNz0WfmVjN3AMUg"><span style="font-size: 16px;">4.3 How is DDI calculated?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxusG1DMWXCQxaaytaa77X1Ysh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusOvgtaraefHTzBtfYu7Ostc"><span style="font-size: 16px;">DDI = (U - D) / (U + D), where U and D are the sums of upward and downward directional movement over the selected period. For each period, the movement magnitude is the larger of the absolute change in the high and the absolute change in the low. It is assigned to upward movement if the sum of the high and low rises from the previous period, or downward movement if that sum falls; both are zero if it is unchanged.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxus4AD6636Sg6TnNwvATzZmHf"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxustjmjpQi6uGKsubV825JYtb"><span style="font-size: 16px;">This is equivalent to subtracting the downward movement proportion (DIF) from the upward movement proportion (DIZ): DDI = DIZ - DIF. It is not the formula "(measured value - target mean) / standard deviation." The ratio requires a nonzero total movement.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuselh8i98MoSa5O9UCEL0pbe"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusOMHLjEeNKmckDXmYmDfLId"><span style="font-size: 16px;">4.4 Is a DDI reading of 0.5 good? Is 2 high?</span></h3><div style="text-align:left" class="ace-line ace-line old-record-id-doxus8KjXFe6j1uiQ4vxWFaiofh"><span style="font-size: 16px;"><br></span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxuskDPpnKLL4c6UsFpj2VOxpd"><span style="font-size: 16px;">Under the unscaled formula above, DDI ranges from -1 to +1 when defined. A reading of 0.5 indicates that upward directional movement outweighs downward movement; it is not inherently "good" or a guaranteed buy signal. A reading of 2 falls outside this range. Interpret DDI in the context of the asset, its recent price action, and the chart's calculation and display conventions, rather than applying standard deviation or quality-control thresholds.</span></div><div style="text-align:left" class="ace-line ace-line old-record-id-doxusCGrBVkfhuFnIgfN7m4Nwfb"><span style="font-size: 16px;"><br></span></div><h3 style="text-align:left" class="heading-3 ace-line old-record-id-doxusHrQgGplXn0eagRhkaRQYWc"><span style="font-size: 16px;">Recommended Reading:</span></h3><ul start="1" class="list-bullet1"><li style="text-align:left" class="ace-line ace-line old-record-id-doxusvfvNqBbK6TD4FTlgBn67Zg" data-list="bullet"><div><a data-lark-is-custom="true" href="https://www.mexc.com/support/article/how-to-use-the-mike-indicator-in-u-s-stock-trading-485036480714594304" style="font-size: 16px;">How to Use the MIKE Indicator in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusRACRAGQsem3kbfVDQRKlCd" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-keltner-channels-kc-in-u-s-stock-trading-484971308880844800" data-lark-is-custom="true" style="font-size: 16px;">How to Use Keltner Channels (KC) in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusvqaxLCSTaLTrcQ4RVhSkjb" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-ene-in-u-s-stock-trading-484214441154009088" data-lark-is-custom="true" style="font-size: 16px;">How to Use ENE in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxuskxTVg17hacu3gwlK1gRtcd" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-the-cdp-indicator-in-u-s-stock-trading-484204459650013184" data-lark-is-custom="true" style="font-size: 16px;">How to Use the CDP Indicator in U.S. Stock Trading</a></div></li><li style="text-align:left" class="ace-line ace-line old-record-id-doxusuqF3YEDyce58z423P4tgwe" data-list="bullet"><div><a href="https://www.mexc.com/support/article/how-to-use-bbi-bollinger-bands-bbiboll-in-u-s-stock-trading-482722189126751232" data-lark-is-custom="true" style="font-size: 16px;">How to Use BBI Bollinger Bands (BBIBOLL) in U.S. Stock Trading</a></div></li></ul></div>

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