Rate of Change

Indicators · Momentum

Percentage rate of change over N bars.

Rate of Change (ROC) measures momentum as a percentage: how much price has moved over the last N bars, expressed as a percent of where it was. It's the percentage cousin of Momentum (which gives a raw price difference) — and that percentage framing is the key advantage, because a 2% move means the same thing whether price is 1.10 or 110, so ROC is directly comparable across instruments and time.

How it works

Each bar the block computes (source − source N bars ago) / (source N bars ago) × 100 over the Period (default 9). The Source defaults to close, or wire any series in. The output oscillates around a zero line in a sub-pane: positive means price is higher than N bars ago (upward momentum), negative means lower. The further from zero, the stronger the move.

When to use it

Use ROC for momentum reads and divergence on a comparable scale. The zero-line cross is a basic momentum-direction signal; extreme readings flag overextension (useful for mean-reversion); and ROC/price divergence warns of a fading move. Because it's percentage-based, it's the right momentum measure when comparing across instruments or building a multi-asset score. It's unbounded and unsmoothed, so it's noisier than a MACD or TSI — often you'll smooth it or feed it into a comparison.

Example

Rate of Change on EURUSD · H1

A momentum filter: apply ROC (9) to price and require it above zero via a Greater Than for "upward momentum," combined with a trend trigger through an And gate into a Buy Signal. Backtest in the Tester.

Tips & gotchas

• Percentage, not raw points — comparable across instruments, unlike Momentum.
• Zero cross = momentum direction; extremes = overextension.
• Unbounded and noisy — smooth it or threshold it for cleaner signals.
• Divergence is a strong use — ROC fading while price rises warns of exhaustion.

Related blocks

• Momentum
• % Change
• MACD
• Coppock Curve

Inputs

Socket	Type	What to wire in
Source	bars / series	Price bars or any indicator series

Outputs

Output	Type	Plots as	Description
ROC	series	Line · sub-pane	Rate of change (%)

Parameters

Parameter	Type	Default	What it does
Period	number · 1–200	9
Source	choice (close, open, high, low, hl2, hlc3, ohlc4)	close
Line color	colour	#7cb342

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Reference auto-generated from the block catalog · category Indicators.