Price Rate Of Change - ROC

If you don’t know what the price rate of change is and you’re an avid investor, you must be living under a rock instead of a ROC.

The price rate of change, or price ROC, is an oscillator based on price changes over time. ROC uses older prices and current prices to calculate the rate of change of a security over time.

While a ROC climbing upwards like Rocky might make you think you’re looking at a solid, bullish upward trend, you have to remember: it totally depends on the time period you’re looking at. A one-day ROC is hardly a trend. Same goes for downward-trending ROCs, showing a bearish bias.

The price rate of change is a basic tool in a technical investor’s nerdy toolbelt. Okay...it’s kind of cool. Eh...sorta.