Rate of Change (ROC)
Percent change between the current close and the close n periods ago; positive values confirm upward momentum, negative values confirm selling pressure.
Formula
ROC = ((Close − Close_n) / Close_n) × 100
Rate of Change simply computes how much price has moved, expressed as a percentage, relative to a fixed lookback (default 9–14 periods). It is an unbounded momentum oscillator — no overbought/oversold thresholds exist by default.
Traders use the zero line as a trend filter: positive ROC = bullish momentum, negative ROC = bearish. A declining ROC peak-to-peak while price makes new highs is a classic momentum divergence warning. It is the simplest form of momentum indicator, and forms the mathematical core of the Coppock Curve.
Related Terms
Awesome Oscillator
Bill Williams momentum oscillator measuring the difference between 5- and 34-period SMA of midpoints; histogram colour changes signal momentum shifts.
IntermediateCoppock Curve
Long-term momentum oscillator that sums a 14- and 11-month ROC then smooths with a 10-period WMA; designed to identify major bear market lows.
AdvancedDetrended Price Oscillator
Removes the long-term trend from price to expose shorter cycles; useful for timing cyclical highs and lows in range-bound conditions.
AdvancedMACD
Trend-following momentum indicator built from the difference between a 12- and 26-period EMA, with a 9-period signal line and histogram.
BeginnerMomentum Indicator
Measures the absolute change in price over n periods; positive and growing values confirm trend strength, declining values warn of exhaustion.
BeginnerPrice Oscillator
Percent difference between two moving averages of price; equivalent to MACD scaled by the longer MA so it is comparable across different-priced assets.
IntermediateRelative Strength Index (RSI)
Momentum oscillator (0–100) that flags overbought conditions above 70 and oversold below 30 over a default 14-period lookback.
BeginnerTRIX
Momentum oscillator showing the percent change in a triple-smoothed EMA; the extra smoothing filters minor fluctuations and cycles below the signal period.
IntermediateWeighted Moving Average (WMA)
Moving average that linearly weights recent closes more than older ones — more responsive than SMA but smoother than raw price.
Beginner