What is, Berma Rate of Change Panel

It is an idea designed to find areas of strong momentum in price movement from the chart.

To understand the idea, let’s assume we have a chart with five versions of the “Berma Rate of Change”.

The five indicators differ from each other in the calculation period, so that the period of each indicator is equal to twice the value of the period before it.

For example, if the first “Berma Rate of Change Period” is ten.

The second “Berma Rate of Change Period” will be twenty.

The third “Berma Rate of Change Period” will be forty.

The fourth and fifth “Berma Rate of Change Period” will be eighty and one hundred and sixty candles respectively.

After we have learned the steps for calculating the period of the five indicators, we use these indicators to determine the strength of the trend, as follows.

When the five indicators move above the zero line, it is a clear indication of the strength of the momentum in the upward trend.

Conversely, when the five indicators move below the zero line, this is a clear indication of strong momentum, but in a downward direction.

When the five indicators do not agree with each other, this is evidence of weak momentum and sideways price movement.

What is Berma Rate of Change Panel.

To avoid cluttering the chart, the signal generated by the five indicators has been condensed into a panel with five colored dots, placed on the right side of the indicator.

If the five dots are blue, this is evidence of strong momentum in the upward direction.

If the five dots are red, this is evidence of strong momentum in the downward direction.

But when the five dots do not agree in color, this is evidence of weak momentum, and the possibility of the price candles moving sideways.

What is Berma Rate of Change Shadows.

Every time the five points of the “Berma Rate of Change Panel” turn blue, we have blue shadows on the indicator, which tells us that this area on the chart was a strong area of ​​bullish momentum.

Every time the five points of the “Berma Rate of Change Panel” turn red, we have red shadows on the indicator, which tells us that this area on the chart was a strong area of ​​bearish momentum.

But, when the five points do not agree in color, this is evidence of weak momentum, and therefore the shadows do not appear.

What is Berma Rate of Change Arrows.

These are arrows that appear on the chart to indicate the possibility of the beginning of a new major trend in price movement.

When the five points agree for the first time on the blue color, this is evidence of the possibility of a change in the main general trend on the chart, from bearish to bullish.

Conversely, when the five points agree for the first time on the red color, this is evidence of the possibility of a change in the main general trend on the chart, from bullish to bearish.

At The End.

We have basically learned about, “Berma Rate of Change Panel”. Also, we have learned about “Berma Rate of Change Shades and Arrows”. Now, let’s move on to the next topic.