What Is The Rate of Change Indicator & How To Trade With It

Rate of Change Indicator

The Rate of Change Indicator is a momentum indicator that describes the percentage price change between the current price and the previous price. The ROC is also known as the PROC (price rate of change indicator). What is the Rate of Change indicator? Just like other momentum indicators; the ROC forecasts change in price based on calculations. The percentage is obtained by plotting the ROC against zero. When the price moves above zero, the ROC indicates an uptrend, while it signifies a downtrend when the price moves into negative territory. The formula for calculating the ROC is: ROC = closing …READ MORE