| Rate of Change (ROC) is a technical analysis indicator that measures the percentage change in an asset's price over a specific period. It is a momentum oscillator that helps to identify the strength and direction of a trend in financial markets. The ROC value oscillates around a zero line, with positive values indicating upward momentum and negative values indicating downward momentum. The Rate of Change is often used to identify potential buy or sell signals based on the market's level of buying or selling pressure. When the ROC crosses above the zero line, it may signal a potential buy signal, while crosses below the zero line may indicate a possible sell signal. Traders may also look for divergences between the indicator and the asset price as potential buy or sell signals. |
