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The Price Rate of Change indicator (ROC) is an effective momentum oscillator for measuring price changes between the current price and the price n periods ago. If a price is higher today than it was n periods ago, it shows that prices are rising in this particular issue, and vice versa.

Calculation:

Where:

  • Closing Price (0) = Today’s closing price
  • Closing Price (n) = Closing price n-periods ago

To see a calculation of ROC in Excel, click here: Attach:ROC.xls



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