Rate of Change & Rate of Change Percent
Rate of Change is simply the net change in Price over the selected period. The Rate of Change Percent reflects the same reading on a percentage basis. Considered a measurement of momentum since it is the speed at which price changes over a specific period of time.
ROC |
C - Cx |
x =Period |
ROC% |
100 * (C / Cx - 1) |
Where x
is the period which must be an integer.
Examples
A 50 period rate of change can be written as follows.
C - C50
A 50 period rate of change percent can be written as follows.
100 * (C / C50 - 1)
![](https://media.screensteps.com/image_assets/assets/003/233/749/original/ba3d0282-bf54-4a5f-8195-38c93e5c69f3.png)
![](https://media.screensteps.com/image_assets/assets/003/229/448/original/a9003f16-6b5e-42d4-ac83-50905adb98ea.png)
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