Rate of Change of Rate of Change (ROC²) Histogram

Rate of Change of Rate of Change (ROC²) Histogram – TradingView Indicator

Overview:

The ROC² Histogram is a momentum-based indicator that measures the rate of change of the rate of change in price. This second derivative of price action helps traders identify momentum acceleration and deceleration, making it a powerful tool for forecasting potential trend shifts, market compression, and breakout conditions.

How It Works:
1. First Rate of Change (ROC) – Measures the percentage change in price over a user-defined period.
2. Second Rate of Change (ROC²) – Measures the rate of change of the first ROC, identifying whether momentum is increasing or decreasing.
3. Color-Coded Histogram for Easy Analysis:
• 🔵 Dark Blue → Increasing positive momentum (acceleration uptrend).
• 🔷 Light Blue → Decreasing positive momentum (uptrend losing steam).
• 🔴 Dark Red → Increasing negative momentum (acceleration downtrend).
• 🔻 Light Red → Decreasing negative momentum (downtrend losing strength).

Trading Applications:

✅ Detect Momentum Shifts: A very low ROC² value suggests that momentum is compressing, signaling an upcoming breakout or trend shift.
✅ Confirm Trend Strength: Strongly colored bars (dark blue or dark red) indicate an active trend, while light-colored bars signal a weakening trend.
✅ Use with Other Indicators: Combine with Volume Profile, VWAP, or Support/Resistance levels for higher-confidence trade setups.

Customization:
• Adjustable ROC and ROC² length settings to fine-tune sensitivity.
• Works across all timeframes and asset classes.
• Optimized visual representation with wide histogram bars for better clarity.

🚀 Add the ROC² Histogram to your chart today and refine your market timing! 🚀