Price Rate Of Change (ROC)
A technical indicator that measures the percentage change between the most recent price and the price "n" periods in the past. It is calculated by using the following formula:

(Closing Price Today - Closing Price "n" Periods Ago) / Closing Price "n" Periods Ago

ROC is classed as a price momentum indicator or a velocity indicator because it measures the rate of change or the strength of momentum of change.

Investopedia Says:
Many traders use a value greater than zero to indicate an increase in upward momentum and a value less than zero to indicate an increase in selling pressure. However, some of the most valuable signals are generated when the price of the asset and the ROC are heading in opposite directions (known as divergence). For example, in the chart above you can see that the ROC is sloping downward while the price of the asset is increasing. This is generally an early indication that a sharp decline may be on the way.

Related Terms:
Close
Disparity Index
Divergence
Momentum
Overbought
Oversold
Technical Analysis

• Exercise Backdating
• Exercise Limit
• Exercise Price
• Exhaustion
• Exhaustion Gap
• Exhaust Price
• Existing Home Sales
• Exit Fee
• Exit Strategy
• Ex-Legal
• Exordium Clause
• Exotic Currency
• Exotic Option
• Expansion
• Expectations Index
• Expectations Theory
• Expected Return
• Expense
• Expense Limit
• Expense Ratio
• Expense Ratio
• Expiration Cycle
• Expiration Date
• Explicit Cost
• Exponential Moving Average (EMA)