Compact mode

Rate of Change (ROC)

Known for Speed Of Price Changes

Table of content

General Information
Characteristics
Facts

Application
Technical Details
Usage
Evaluation
Performance Metrics
Alternatives
FAQ

General Information

Indicator Type 📊

The category or classification of the trading indicator based on its primary function and analysis method.

Momentum

Rate of Change (ROC) is a Momentum type indicator. Measures rate of price change, ideal for identifying strong trends Click to see all.
Asset Class 💰

Specifies the financial instruments for which the indicator is most commonly used

Stocks

The asset classes Rate of Change (ROC) is typically used for are Stocks. Indicators optimized for analyzing and predicting stock price movements in equity markets. Click to see all.

Forex

The asset classes Rate of Change (ROC) is typically used for are Forex. Indicators optimized for currency pair trading in the foreign exchange market. Click to see all.

Commodities

The asset classes Rate of Change (ROC) is typically used for are Commodities. Trading indicators optimized for commodity markets like oil, gold, and agricultural products. Click to see all.

Cryptocurrencies

The asset classes Rate of Change (ROC) is typically used for are Cryptocurrencies. Indicators tailored for the volatile and 24/7 nature of cryptocurrency trading. Click to see all.
Made In 🌍

The country or origin of the trading indicator

Unknown

Rate of Change (ROC) was developed in Unknown. Indicators with undisclosed country of origin, focusing on performance Click to see all.

Characteristics

Lagging or Leading 🏁

Indicates whether the trading indicator is a lagging or leading type, reflecting its predictive nature.

Leading

Rate of Change (ROC) is a Leading indicator. Indicators that predict future price movements Click to see all.
Complexity Level 🧑

Indicates the level of expertise required to effectively use the indicator

Beginner

The complexity level of Rate of Change (ROC) is Beginner. Simple and easy-to-understand indicators suitable for novice traders. Click to see all.
Popularity 🏆

Indicates how widely used and recognized the indicator is in the trading community

Medium

The popularity of Rate of Change (ROC) among traders is considered Medium. Indicators with balanced adoption and potential effectiveness Click to see all.

Facts

Interesting Fact 💡

An intriguing or lesser-known fact about the trading indicator

One of the oldest momentum indicators still in use today
Sarcastic Fact 😉

A humorous or ironic observation about the trading indicator

Jokingly called the 'market speedometer' by some traders

Application

Timeframe 🕑

The time intervals or periods for which the trading indicator is most effective or commonly used.

Any

Rate of Change (ROC) is most effective for Any timeframes. Flexible indicators adaptable to various trading timeframes, offering versatility in analysis. Click to see all.

Technical Details

Calculation Method 🧮

The mathematical or analytical approach used to compute the trading indicator's values.

Price-Based

Rate of Change (ROC) uses the Price-Based calculation method. Indicators focusing on price movements and patterns for market analysis. Click to see all.
Signal Generation 📊

Describes the methods by which the indicator produces trading signals

Crossovers

Rate of Change (ROC) generates trading signals through Crossovers. Indicators that generate signals when one line crosses another, indicating trend changes Click to see all.

Divergences

Rate of Change (ROC) generates trading signals through Divergences. Indicators that show discrepancies between price and indicator movements, suggesting potential reversals Click to see all.
Customization Options 🔧

Lists the parameters that can be adjusted to fine-tune the indicator

Period

Rate of Change (ROC) offers customization options for Period. Enables customization of analysis timeframe Click to see all.

Usage

For whom 👥

The target audience or user group for the trading indicator

All Traders

Rate of Change (ROC) is designed for All Traders. Versatile tools suitable for traders of all experience levels and styles Click to see all.
Purpose 📈

The primary purpose or application of the trading indicator

Momentum Measurement

Rate of Change (ROC) is primarily used for Momentum Measurement. Indicators that quantify rate of price change over time Click to see all.

Evaluation

Pros 👍

Advantages of using the trading indicator

Simple To Understand And Use

Offers straightforward analysis, making it accessible for traders of all levels Click to see all.

Effective For Identifying Overbought/Oversold Conditions
Cons 👎

Disadvantages or limitations of the trading indicator

Can Produce False Signals In Ranging Markets

Sensitive To Sudden Price Changes

Refers to indicators that may produce unreliable signals during rapid market movements. Click to see all.

Performance Metrics

Reliability Score 💯

A score indicating the overall reliability of the trading indicator

7.5

The reliability score of Rate of Change (ROC) is 7.5 out of 10. Click to see all.
Ease of Use Score 💻

A score representing how user-friendly and intuitive the trading indicator is

9

The ease of use score for Rate of Change (ROC) is 9 out of 10. Click to see all.
Versatility Score 🔀

A score indicating the adaptability of the trading indicator across different markets and timeframes

8

The versatility score of Rate of Change (ROC) is 8 out of 10. Click to see all.
Customization Score 🔧

A score representing the degree of customization available for the trading indicator

6.5

The customization score for Rate of Change (ROC) is 6.5 out of 10.
Score ⭐

The overall score of the trading indicator based on various performance metrics

7.8

The overall score of Rate of Change (ROC) is 7.8 out of 10. Click to see all.

Alternatives to Rate of Change (ROC)

Hull Moving Average (HMA)

Known for Reducing Lag In Moving Averages

💯 is more reliable than Rate of Change (ROC)

🔧 is more customizable than Rate of Change (ROC)

Relative Strength Index (RSI)

Known for Momentum Measurement

💯 is more reliable than Rate of Change (ROC)

Elder-Ray Index

Known for Combining Trend And Momentum

🔧 is more customizable than Rate of Change (ROC)

Heikin Ashi Candlesticks

Known for Smoothing Price Action

Known for Combining Strengths Of Two Popular Indicators

💯 is more reliable than Rate of Change (ROC)

🔀 is more versatile than Rate of Change (ROC)

🔧 is more customizable than Rate of Change (ROC)

Momentum Indicator

Known for Price Velocity

Awesome Oscillator (AO)

Known for Simplicity And Effectiveness

Fast Stochastic

Known for Rapid Momentum Shifts

Known for Identifying Potential Reversal Points

🔀 is more versatile than Rate of Change (ROC)

⭐ is rated higher overall than Rate of Change (ROC)

Triple Exponential Average (TRIX)

Known for Filtering Out Market Noise

🔧 is more customizable than Rate of Change (ROC)

FAQ about Rate of Change (ROC)