top of page

Price ROC

The Price Rate-of-Change (ROC) indicator displays the difference between the current price and the price x-time periods ago. The difference can be displayed in either points or as a percentage.


The ROC displays the wave-like motion in an oscillator format by measuring the amount that prices have changed over a given time period. This cyclical action is the result of the changing expectations as bulls and bears struggle to control prices.




ROC is a momentum indicator that measures velocity and also leads the price action. As prices increase, the ROC rises; as prices fall, the ROC falls. The greater the change in prices, the greater the change in the ROC. The time period used to calculate the ROC may range from 1 to 200-period (or longer).


The most popular time periods are the 12 and 25 period ROC. The higher the ROC, the more overbought the security; the lower the ROC, the more likely a rally.  However, as with all overbought/oversold indicators, it is prudent to wait for the market to begin to correct (i.e., turn up or down) before placing your trade.  A market that appears overbought may remain overbought for some time.  In fact, extremely overbought/oversold readings usually imply a continuation of the current trend.


The 12-period ROC tends to be very cyclical, oscillating back and forth in a fairly regular cycle.  Often, price changes can be anticipated by studying the previous cycles of the ROC and relating the previous cycles to the current market.

Price ROC
bottom of page