I read this post before I started investing in index funds.
This answer provides really good insights and analysis which I am thinking of following to increase my earnings.
I am currently investing in UK Equity Index Fund and I found out using Fidelity tools I can display a chart with Rate of Change set to 100 (or any other numerical Period value). The UI for it looks like this:
The above picture shows I am able to set Period, but it is not given if it is in days, weeks or months? Shall I assume that these are days?
The author of the answer mentioned above sets the ROC indicator as follows:
"Using a simple Rate of Change indicator over the past 100 days and smoothed out with a 50 day Moving Average"
Given the screenshot above, shall I set Period to 50 days instead? Also, I don't fully understand what "indicator over the past 100 days" means.
Using the Period set to 100, I was able to create the following chart:
It is clearly visible that the ROC indicator crosses 0 and goes into negatives on the 18th of August 2018.
Am I correct that given the answer mentioned, I should have sold all my shares in this index on that day?
Also, giving the ROC tool provided by Fidelity(UK) (my current broker) which has only one variable, am I able to create ROC indicator over the past 100 days and smoothed out with a 50 day? If not, is there an online tool that I can use for that for free?
I know it's a very loaded post but would really appreciate the answers to all the questions.