Price Rate of Change (ROC) |
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The ROC closely resembles the momentum indicator, however, there are a few differences: First, the ROC's formula is based on dividing the current closing price by the price from a previous time period, thus ROC is a relative number. Secondly, the ROC has a 100 line serving as the reference line rather than a zero line.
12- and 25-day ROC are most widely used. A 12-day ROC is a perfect short-term and medium-term indicator of overbought/oversold. The higher ROC is, the more probable the rise.
Parameters
| PARAMETER | DESCRIPTION |
| Period | The number of periods to calculate the difference in prices |
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