Rate of Change

Last modified

Rate of Change

Rate of Change (ROC) is a variation on the Momentum indicator.

It is calculated by taking the latest price and dividing it by the first price in the period chosen to plot the indicator. The resultant figure is then made into a percentage (multiply result by 100) to provide better visualization of the resulting graph:

rocformula.gif

The indicator is a percentage plotted on either side of a horizontal line representing the value of "1".

Moving Average

Your SOFTWARE's ROC indicator also includes a moving average line. This is a moving average of the indicator's data, not the underlying security's price data. It serves to smooth the indicator results. Its period is the same as the period selected for the ROC calculation.

Either component of the ROC indicator can be hidden or displayed using the Visible checkbox in the properties dialog.

Page statistics
864 view(s) and 2 edit(s)
Social share
Share this page?

Tags

This page has no classifications.

Comments

You must to post a comment.

Attachments