ROCR (Rate of Change Ratio)

Indicator Description

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

Function Information

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

Calculation Principle

ROCR is calculated using the following formula:

ROCR = Current Close / Close[n]

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