The Price Rate of Change(ROC) is an oscillator that displays the difference between the current price and the price n-periods ago. As prices increase, the ROC rises and as prices fall, the ROC falls. The greater the change in prices, the greater the change in the ROC.
The 10-day ROC is an excellent short- to intermediate-term overbought/oversold indicator. The higher the ROC, the more overbought the security; when the ROC falls expect a rally. As with all overbought/over-sold indicators, watching for the market to start its correction before placing a trade. Often extremely overbought/oversold readings usually imply a continuation of the current trend and any overbought market may remain that way for some time.
A 10-day ROC tends to oscillate in a fairly regular cycle. Often, price changes can be anticipated by studying past cycles of the ROC and applying the predicted pattern to the current market
Calculation:
Type = Percent/Point
Price-n = The price n-periods ago
Inputs:
Price Field = Close
Indicates Open, High, Low or Closing price.
Period = 12
Indicates time period(the number of days for daily analysis, the number of weeks for weekly analysis, etc.).
Calculation Type = Point
Indicates Percent/Point selection.
Indicator Type: Momentum