Price Rate of Change (ROC)
Definition: Price Rate of Change is a momentum indicator that measures the percentage change in price over a specified period.Use: ROC helps traders identify the speed and magnitude of price movements. Traders use ROC to identify overbought or oversold conditions. When ROC is positive, it suggests upward momentum, while negative ROC indicates downward momentum. Traders may look for divergences between price and ROC to spot potential trend reversals.