What it does
Rate of Change (ROC) measures momentum as a percentage: 100 times (current close minus the close N bars ago) divided by that older close, with common settings of 9, 12 or 14 bars. Because it is expressed in percent, readings are comparable across instruments and time. It oscillates around zero, rising when price gains speed and falling when it loses speed.
How to add it
Click Indicators (ƒx) in the header.
Search “Rate of Change” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- Use zero-line crosses as momentum shifts: sustained moves above zero back long positions, below zero shorts.
- Trade divergences: price grinding to new highs while ROC peaks decline warns the advance is decelerating.
- Rank instruments: comparing ROC across a watchlist is a simple relative-momentum screen for rotation strategies.
- Identify extremes: unusually large ROC readings relative to the instrument's history mark overextension that often precedes consolidation.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| Length | number | 9 | 1–200 |
| Source | select | close | Close / Open / High / Low / HL2 / HLC3 / OHLC4 |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| ROC(9) | line | #2196F3 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision (default 2 decimals), price-scale labels and status-line values are configurable at the bottom of the Style tab.
Reference levels
| Level | Value |
|---|---|
| Zero Line | 0 |
Level values, colors and line styles are editable in settings.
Tips
- Hide the study from the legend eye instead of removing it when you only want it out of the way temporarily.
- Merge multiple oscillators into one pane from the legend ⋯ menu to compare them on a shared axis.
- Double-click the plot to open settings directly, skipping the legend hover.
Watch out for
- ROC depends entirely on one old price dropping out of the window, so a single spike N bars ago can distort today's reading (the drop-off effect).
- It whipsaws around zero in ranges and has no fixed overbought/oversold levels.