Rate of Chg

Definition

The Rate of Change indicator (ROC) is a momentum oscillator. It calculates the percent change in price between periods. ROC takes the current price and compares it to a price "n" periods (user defined) ago. The calculated value is then plotted and fluctuates above and below a Zero Line. A technical analyst may use Rate of Change (ROC) for; trend identification, and identifying overbought and oversold conditions.

When prices are rising or advancing, ROC values remain above the Zero Line (positive) and when they are falling or declining, they remain below the Zero Line (negative). The Rate of Change (ROC) indicator is can be a good tool for identifying the overall long-term trend of a financial instrument.

Overbought refers to a security with a price that's higher than its intrinsic value. The opposite of overbought is oversold, where a security is thought to be trading below its intrinsic value.

Default Inputs

Price sets the number of days to identify the reversal, 3 by default.

ROCLength sets a value in the range from 1 to NumDays, 2.25 by default.

AlertLength sets the number of bars to evaluate the alert condition, 14 by default.

ColorNomLength sets the number of bars over which to normalize the indicator for gradient coloring, 14 by default.

UpColor sets the color for indicator values that are relatively high over ColorNormLength bars, yellow by default.

DnColor sets the color for indicator values that are relatively low over ColorNormLength bars, cyan by default.

GridForegroundColor sets the color for numbers in Scanner cells when both UpColor and DnColor are set to positive values, black by default.