What ROC shows
The percentage price change over the last N candles.
Indicator guide · Oscillators
Rate of Change (ROC): what it shows, settings and how to read it.
The percentage price change over the last N candles.
How it is calculated
The percentage change between the current close and the close N candles ago.
Usual settings
9 or 12 for the short term, 25 for the medium term.
How traders read it
Above zero momentum is positive; a rising ROC means the move is speeding up.
Where it fails
One old candle leaving the window can swing it sharply.
What to combine it with
A moving average. A cross of the zero line in the direction of the trend is the usual signal.
Try ROC on a live chart
Sign in, open Genni Charts, press the "ƒx Indicators" button above the chart and choose ROC. Click its name on the chart to change the settings. It is free for every member.
More in "Oscillators": RSI · MACD · Stochastic · Stochastic RSI · CCI · Williams %R · All 25 indicators
Questions
Frequently asked questions
What is the ROC indicator?
The percentage price change over the last N candles.
What are the best settings for ROC?
The usual settings are: 9 or 12 for the short term, 25 for the medium term. No setting is best in every market, so test a change on past data before relying on it.
Is ROC reliable on its own?
No single indicator is. One old candle leaving the window can swing it sharply. Most traders use it together with: A moving average. A cross of the zero line in the direction of the trend is the usual signal.
How do I add ROC to a chart for free?
Sign in, open Genni Charts, press the "ƒx Indicators" button above the chart and choose ROC. Click its name on the chart to change the settings. It is free for every member.
This page is education, not investment advice. Trading involves substantial risk of loss. Read next: Trading indicators · Trading strategies · Candlestick patterns