A percentage momentum line centered on zero. Above zero means price is higher than N bars ago (rising momentum); below zero means it is lower. The distance from zero shows how strong the move is.
ROC (Rate of Change) is a momentum oscillator that measures how much price has changed over a fixed number of bars, as a percentage. It swings around zero: positive when price is higher than it was, negative when lower.
How it works
It compares the current price to the price N bars ago (the period, default 14) and expresses the difference as a percentage. The further price has run in either direction, the larger the reading; a flat market keeps ROC near zero.
Configuration
periodscalar
How many bars back the current price is compared against. Larger = measures a longer move and reacts slower; smaller = measures a shorter move and reacts faster. 14 is the classic default.
Connects to
Feeds into
Examples
Use a ROC cross above zero as a long momentum gate, and below zero for shorts.
Require ROC to be positive before allowing trend-continuation entries.
Common mistakes
Comparing raw ROC values across different symbols — a 2% move means different things on a quiet pair versus a volatile one.
Picking a period so short that ROC flips sign on normal noise.