Define: Rate of Change

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Definition: Rate of Change



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Full Definition of Rate of Change


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 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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Synonyms For Rate of Change


ROC


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Rate of Change. PayrollHeaven.com. Retrieved April 05, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/rate-of-change/

Definition Sources


Definitions for Rate of Change are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd March, 2020