Rate of Change (ROC)
A momentum-based technical indicator that measures the percentage change in price between the current price and the price n periods ago.
Usage
Use to measure the speed at which price is changing. It is often used to identify overbought/oversold conditions and trend reversals.
Background
The Rate of Change (ROC) indicator is a pure momentum oscillator that measures the percentage change in price from one period to the next. It is highly effective at identifying the velocity of a move and anticipating when that velocity is slowing down. — StockCharts ChartSchool
Parameters
timeperiod(default: 10): Lookback period
Formula
\[
ROC = \frac{Price_t - Price_{t-n}}{Price_{t-n}} \times 100
\]