Price Rate of Change


Function Name: roc

Tags: Rate of Change, ROC

Category: Momentum

The Price Rate of Change indicator calculates the difference between the current price and the price x-periods ago as a percentage. Crossing above the zero line is considered to be positive indication and to some a buy signal. Crossing below the zero line is considered to be negative and to some a sell signal. Measuring current prices versus earlier prices sheds light on the pace of a trend and possible trend reversals. It may also be useful in identifying overbought and oversold conditions when the Price Rate of Change becomes extremely strong or weak.

The Price Rate of Change indicator is one of the easiest and most effective indicators you'll find. The Price Rate of Change indicator lends itself to overbought and oversold interpretation. The problem is that there are no hard-and-fast rules about where the lines should be drawn (even more reason to make them variables), since the magnitude of the oscillations will vary according to the volatility of the underlying security and the time span being considered. For this reason overbought and oversold lines are constructed on the basis of judgment.





Default Value: 20  |  Minimum: 1  |  Maximum: 9999


Type: Numeric