price rate of change (ROC)

A meter that tracks and compares the fluctuation of current price to the same price from a defined set of previous periods. Categorized as a price momentum indicator, the price rate of change takes into account the price of an asset as well as the rate of change and is therefore a highly effective method used by traders to determine an impending decline.

The equation for price rate of change is: (p - n) / n
Where: p = current closing price, n = previous closing price