Articles

Rate of Change

Posted By: TradersLog

The Rate of Change Indicator (ROC) is an oscillator that shows how rapidly the price of a security is moving. It compares the difference between the current price and the price from a set prior time period.

ROC rises with price increases and falls with price declines. ROC is often used as a short term overbought/oversold indicator.

Chart courtesy of Prophet Financial Systems (www.prophet.net)

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