ROC (Rate of Change)

Rate of Change — equity momentum.

What is ROC?

Rate of Change measures the percentage change between current price and N periods ago. An unbounded oscillator centered on zero that indicates momentum strength.

Parameters

  • Period: 12 (standard lookback)
  • Scale: Percentage change
  • Zero line: Reference level (no change)

Interpretation

  • Bullish: ROC > 0 and rising
  • Bearish: ROC < 0 and falling
  • Extreme: Very high/low ROC suggests overbought/oversold

Trading Signals

  • Buy: ROC crosses above zero (upward momentum)
  • Sell: ROC crosses below zero (downward momentum)
  • Divergence: ROC vs price can signal reversals

Price Overlay

  • Enter Closer-Look mode to see close price overlay
  • Toggle: Show/hide close price line (right axis)
  • ROC fading while price trends = momentum exhaustion

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