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Indicator Formula

Technical Details — Rate of Change (ROC)

Section titled “Technical Details — Rate of Change (ROC)”

Overview

Section titled “Overview”

The Rate of Change calculation produces a n unbounded oscillator measuring momentum.

Mathematical Derivation

Step 1 — Calculate ROC

Section titled “Step 1 — Calculate ROC”

Purpose: Derive the Rate of Change value.

See the Rate of Change formula derivation in technical references.

Where:

  • Period parameters control lookback sensitivity

What This Measures: Momentum strength and direction

Compact Formula Summary

Refer to Rate of Change formula for compact notation.

Defaults: Period = 14 bars

Complete Calculation Example

See the Rate of Change technical documentation for worked calculation examples.

Key Takeaways from the Example
  1. Period sensitivity: Shorter periods = more signals, longer = smoother
  2. Threshold selection: Adjust based on asset volatility
  3. Signal line: Smoothed version for crossover timing