Rate of Change (ROC)
Original schematic showing the guide's principal visual relationships.
Formula and components
The percentage change between the current price and price a fixed number of periods ago.
ROC(n) = 100 × [Price(today) − Price(n periods ago)] ÷ Price(n periods ago).
How it works
The indicator transforms price, range, or volume observations over a selected lookback. Shorter settings react faster but create more noise; longer settings respond more slowly and emphasize the underlying regime. Always compare the reading with price structure and timeframe.
How to read it
Positive ROC indicates appreciation over the lookback, negative ROC indicates decline, and slope describes acceleration or deceleration.
Confirmation checklist
Compare the current reading with its centerline, thresholds, prior swing, and price action. Crossovers and divergences are context clues, not standalone entries.
Limitations and false signals
Results depend heavily on the chosen comparison point; a large move leaving the window can change ROC abruptly without a new price event.