Business, Legal & Accounting Glossary
The Price Rate of Change (ROC) indicator displays the difference between the price today and the price a given number of trading periods ago. The ROC plot requires two inputs: the period of comparison for the price and the averaging period used for the signal line.
The price Rate of Change (ROC) indicator is considered to indicate overbought positions when the indicator is at a peak and oversold conditions when the indicator is at a minimum. A signal line, which is a moving average of the ROC, is used to indicate trend reversals.
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This glossary post was last updated: 23rd March, 2020