Rate of Change: percent change from 9 bars ago, or the raw difference in Momentum mode, around a zero line.
Overview
Rate of Change (ROC) shows how much price has moved over a set number of bars, in its own pane. Above zero price is higher than it was; below zero it is lower.
The line and gradient fill are green above zero and red below.
How it works
ROC % = (source - source 9 bars ago) / source 9 bars ago x 100. In Momentum mode it shows the raw difference instead.
The length sets how far back the comparison goes.
How to use it
- Some traders watch zero-line crosses as changes in short-term direction.
- Use extreme readings to spot moves that are unusually fast for the symbol.
- Look for divergence between ROC and price at swing points.
- Use percent mode to compare symbols.
These are ways some traders read it, for learning. They are not trade signals.
Settings
| Setting | Default |
|---|---|
| Settings | |
| LengthLookback period; the source is compared with its value this many bars ago. | 9 |
| SourceSeries used as input for the calculation.Options: Close, Open, High, Low, HL2, HLC3, OHLC4, HLCC4 | Close |
| ModeROC % plots the change as a percentage of the source value from the lookback; Momentum plots the raw difference.Options: ROC %, Momentum | ROC % |
| Style | |
| LineColor of the line when the reading sits exactly at zero. | #787b86 |
| BullishColor of the line and fill while the reading is above zero. | #089981 |
| BearishColor of the line and fill while the reading is below zero. | #f23645 |
| Gradient FillFills the area between the line and zero, following the line color. | On |
Alerts
You can alert on its line crossing a value or the candle close (from the chart's + menu); checked while ZoroCharts is open.
Notes and limits
- Works on any symbol and timeframe; it only needs candle data.
- It can be jumpy because it compares only two points.
Education only. Not financial advice. Indicators mark what happened on the chart; they do not predict what price will do. Trading futures, forex, crypto and other markets carries a high level of risk and may not be suitable for everyone.