ClearPath Trader

Rate of Change

Momentum as percent change over a lookback (ROC). Crosses of zero and divergences are common signals.

Category: Technical · Complexity: ★★☆☆☆ (2/5)

Tags: technical, live-overlay, price

Live chart overlay: ROC

Rate of Change chart illustration

Formula

ROC = 100 · (C_t − C_{t-n}) / C_{t-n}

How to read

Zero-line is unchanged price. Rising ROC = accelerating advance; falling ROC = decelerating or reversing.

Limitations

Sensitive to the lookback spike n bars ago (drop-off effect).

Typical settings

12 or 21

Rate of Change is part of the ClearPath Encyclopedia of Indicators — 190 models explained with standard SVG illustrations, so you can study an indicator before you put it on a live chart.

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