Description

Rate of Change indicator is a momentum oscillator that measures change of underlying security's price over a specified period.


Formula

rocPercArray[] = (close-close[-period])/close[-period]
rocRatio100Array[] = close/close[-period]*100
rocRatioArray[] = close/close[-period]*100
rocArray[] = (close/close[-period]-1)*100


Interpretation

Rate of Change is used to determine how fast the price of underlying security is changing. Low values may indicate oversold conditions, high ROC may indicate beginning of a downtrend. inteliCharts figure below contains four different types of Rate of Change indicators in the lower pane: ROC, ROC Percentage, ROC Ratio and ROC Ratio*100

inteliCharts - Rate of Change
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