ROCP (Rate of Change Percentage)

Indicator Description

ROCP (Rate of Change Percentage) is a variant of the ROC indicator that measures price momentum by calculating the percentage change between the current price and the price n periods ago, but uses a different calculation method.

Function Information

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

Calculation Principle

ROCP is calculated using the following formula:

ROCP = (Current Close / 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. ROCP > 100 indicates upward momentum
  2. ROCP < 100 indicates downward momentum
  3. Watch for 100-line crossovers
  4. Pay attention to market environment changes
Last Updated: