# Rate of Change (ROC)

The Rate of Change (ROC) indicator displays the difference between the price today and the price a given number of trading periods ago.

# Rate of Change (ROC)

The **Rate of Change (ROC) **indicator displays the difference between the price today and the price a given number of trading periods ago.

## Rate Of Change Calculation

The price Rate of Change (ROC) indicator displays the difference between the price today and the price a given number of trading periods ago. The ROC plot requires two inputs: the period of comparison for the price and the averaging period used for the signal line.

## Application of Rate Of Change

The Rate of Change (ROC) indicator signals overbought positions when the indicator is at a peak and oversold conditions when the indicator is at a minimum. A signal line, which is a moving average of the ROC, is used to indicate trend reversals.