Price Rate Of Change (ROC)
Definition
A meter that tracks and compares the fluctuation of current price to the same price from a defined set of previous periods. Categorized as a price momentum indicator, the price rate of change takes into account the price of an asset as well as the rate of change and is therefore a highly effective method used by traders to determine an impending decline.The equation for price rate of change is: (p - n) / nWhere: p = current closing price, n = previous closing price
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