Price Rate Of Change (ROC)

What Is Price Rate Of Change (ROC)

ROC is a price momentum indicator used by traders to get an indication if a stock is negative and there is continues selling pressure or if a stock is positive and there is continued buying pressure.

The ROC indicator is a line that runs under the real time graph. When above zero it is a sign of upward momentum and when it is below zero the indication is downward momentum.

When the ROC indicator is moving the opposite way from the graph candlesticks it is an indication of trend reversal and the day trader stays on there toes.