← Back to all indicators
Momentum

Rate of Change

ROC

Calculates the percentage change in closing price over N periods. Positive values mean price is rising; negative means falling. It oscillates around zero and helps traders gauge momentum strength.

Tips

ROC zero-line crossovers lag less than MACD crossovers but are noisier; combine with a trend filter to reduce false signals
Extreme ROC spikes often mark climactic moves; rapid mean-reversion trades can work after historically large readings

Parameters

Period
2 - 100