Price Rate of Change (ROC)

The Price Rate of Change (ROC) indicator measures the percentage change in a security's price over a specified number of periods — essentially quantifying how fast the price is moving relative to its level a set number of sessions ago. It is calculated as: ROC = [(Current Price – Price N Periods Ago) ÷ Price N Periods Ago] × 100. A rising positive ROC indicates accelerating upward momentum; a falling ROC or one moving toward zero signals slowing momentum. The ROC oscillates around zero: positive values indicate upward momentum, negative values downward. It is used to confirm trend strength, identify overbought and oversold conditions at extremes, and detect divergences from price that can signal upcoming reversals. ROC is particularly effective when used across multiple timeframes simultaneously to compare short and long-term momentum dynamics.