Rate of Change
ROC is a momentum indicator that measures velocity and also leads the price action.
Overview
Rate of Change, ROC, can be very useful, because it is a leading indicator (ROC changes direction before the underlying price). ROC is sometimes also referred to as Price Rate of Change (PROC).
- ROC is a price momentum or velocity indicator.
- A rising ROC indicates a bullish increasing momentum
- A falling ROC indicates a bearish decreasing momentum
- ROC should always be used in conjunction with reversal signals on the price chart.
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