ROC - Rate of Change
Data regarding ROC - Rate of Change.
What is ROC?
Rate of Change measures the percentage change between current price and the price N periods ago.
ROC = ((Current Price - Price N periods ago) / Price N periods ago) × 100
Interpretation
- ROC > 0: Price higher than N periods ago (bullish momentum)
- ROC < 0: Price lower than N periods ago (bearish momentum)
- ROC crossing zero: Momentum shift signal
- Extreme readings: Overbought/oversold conditions
Trading
- Zero-line crossover for trend signals
- Divergence with price for reversal signals
- Extreme readings for mean reversion