Sunday, August 12, 2007

Rate of Change (ROC)

The rate of change is another version of the momentum oscillator. The difference consists in the fact that, while the momentum's formula is based on subtracting the oldest closing price from the most recent, the ROC's formula is based on dividing the oldest closing price into the most recent one. (See Figure ROC1)

Figure ROC1. An example of the rate of change (ROC) oscillator

ROC = (CCP/OCP) * 100, where
CCP - current closing price;
OCP = old closing price for the predetermined period Larry Williams %R.

3 comments:

Ghazanfar Ali Shah said...

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forex trading

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