Rate of change
The percent change in the close compared with N bars ago.
Momentum oscillatorsBest on 3M, 6M, 1YAlso called ROC
What it shows
Rate of change is the simplest momentum measure. ROC = (close today − close N bars ago) ÷ close N bars ago × 100. With N = 12, it is the 12-bar percent change.
The line crosses zero when today's close equals the close N bars ago.
How we find it
The same code that draws it on your chart follows these steps, with the same result every time.
- Pick N (12).
- ROC = (close − close N bars ago) ÷ close N bars ago × 100.
- Plot under the price.
- Mark zero.
Starting values: N 12. These are proposed and will be tuned on real price data before launch.
How to read it
- The panel shows percent change over 12 bars.
- Above zero: price is higher than 12 bars ago.
- Below zero: lower.
Status labels you may see
| Label | What it means |
|---|---|
| Positive | ROC is above zero. |
| Negative | ROC is below zero. |
| Near zero | ROC between −1% and 1%. |
What cancels it
Nothing cancels it.
What traders check next
- How ROC compares with the past year.
- Whether it is rising or falling.
- Price trend.
Limits
- It drops when an old high leaves the window.
- N is a choice.
- It does not smooth noise.
Try it in forecastviz
- Open any ticker and choose Momentum oscillators → Rate of change in the left menu.
- Switch between 3M, 6M, 1Y to see how the picture changes.
- Compare with Momentum and Percentage price oscillator on the same chart.
Questions
How is it different from momentum?
Momentum is the difference. ROC is the percent.
What N is typical?
Anything from 9 to 252.
Related trends
Further reading
- Wilder, New Concepts in Technical Trading Systems
- Appel, Technical Analysis: Power Tools for Active Investors
- Murphy, Technical Analysis of the Financial Markets
- Kaufman, Trading Systems and Methods
Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.