ROC (Rate of Change)

Indicator Description

ROC (Rate of Change) is a momentum indicator that measures price momentum by calculating the percentage change between the current price and the price n periods ago.

Function Information

• Function Name: ROC
• Input Parameters:
  • Close: Closing price
• Parameter Settings:
  • timeperiod: Calculation period, default 10
• Output: ROC value

Calculation Principle

ROC is calculated using the following formula:

ROC = ((Current Close - Close[n]) / Close[n]) * 100

Where:

• Current Close is the current closing price
• Close[n] is the closing price n periods ago

Usage Scenarios

1. Momentum Analysis
2. Trend Confirmation
3. Trading Signal Generation
4. Market State Analysis

Usage Recommendations

1. ROC > 0 indicates upward momentum
2. ROC < 0 indicates downward momentum
3. Watch for zero-line crossovers
4. Pay attention to market environment changes