10 — Oscillators

Rate of Change#

✓ Mathematical
◆ The PatternROC = ((Close − Close_N) / Close_N) × 100.

Rate of Change — a pure momentum oscillator measuring percentage price change.

ROC = ((Close − Close_N) / Close_N) × 100

Oscillates around zero. Positive = upward momentum; negative = downward.

Uses:
• ROC crossing above zero → bullish shift
• Divergences between ROC and price signal weakening trends
• Common period: 12 or 14
Pattern bridge: Rate of change is the discrete gradient of price — the slope at each point. In statistics, it’s the first difference used to make time series stationary.
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