Rate of Change Indicator (ROC)

Search Dictionary

Definition of 'Rate of Change Indicator (ROC)'

The Rate-of-Change (ROC) indicator is also referred to as Momentum. This indicator is an oscillator that measures the percent change in price from one period to the next.

The ROC calculation compares the current price with the price a given number of periods ago. The indicator plot forms an oscillator that fluctuates above and below a zero line as the Rate-of-Change moves from positive to negative.

Trading signals using the ROC momentum oscillator include:
  • centerline crossovers (watch for whipsaw)
  • bullish divergences
  • bearish divergences
  • overbought readings
  • oversold readings

Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.

Is this definition wrong? Let us know by posting to the forum and we will correct it.

Emini Day Trading / Daily Notes / Forecast / Economic Events / Trading Indicators / Search / Terms and Conditions / Disclaimer / Books / Online Books / Site Map / Contact / Privacy Policy / Links / About / Day Trading Forum / Investment Calculators / Pivot Point Calculator / Market Profile Generator / Fibonacci Calculator / Mailing List / Advertise Here / Articles / Financial Terms / Brokers / Software / Holidays / Stock Split Calendar / Features / Mortgage Calculator / User Pages / Donate

Copyright © 2004-2019, MyPivots. All rights reserved.