Category: Momentum · Complexity: ★☆☆☆☆ (1/5)
Tags: momentum, live-overlay, price
Live chart overlay: ROC
Formula
ROC = 100 · (C_t − C_{t-n}) / C_{t-n}
How to read
Short name for Rate of Change. Crosses of zero and divergences are the main uses.
Limitations
Lookback drop-off can fake signals when an old spike leaves the window.
Typical settings
12
ROC 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.