The Rate of Change (ROC) indicator measures the percent change in price. The
ROC calculation compares the current price with the price n periods ago.
ROC = ( (Today's close - Close n periods ago) / (Close
n periods ago) ) * 100
The Volume Rate-of-Change ("ROC") is calculated
identically to the Price ROC, except it displays the ROC of the volume,
rather than of its closing price.
Volume ROC = ( (Today's Volume - Volume n periods ago)
/ (Volume n periods ago) ) * 100
The plot forms an oscillator that fluctuates above and
below the zero line as the Rate of Change moves from positive to negative.
The oscillator can be used as any other momentum oscillator by looking for
higher lows, lower highs, positive and negative divergences, and crosses
above and below zero for signals.
