Absolute Value

mbrooksh

Does anyone know how to take an indicator and show it as an absolute value? I want to look at ROC (rate of change) but see the degree of change not the direction. Is this possible?

markd

I think you want the ADX Line indicator. Here's the chart school article:

https://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:average_directional_index_adx

Kevo

Nice suggestion markd.

There are several centered unbounded oscillators (indicators) that fluctuate above or below the center line - usually zero. When the indicator goes below the centerline, this means something, usually negative momentum or trend, which is not something you want to defeat by taking the absolute value of it.

Centerline crosses are normally signals. The direction of the indicator is just as important as whether it is above or below the zero line since the direction can warn of a pending centerline cross.

For ROC:
- prices rise when ROC is positive.
- prices fall when ROC is negative.
- centerline crossovers are used to identify trend.
- use a larger period (bars) to see the longer-term trend.

The best centered unbounded oscillators are those that have a built in signal line.