Glossary · Pro tools

Rate of change

The percent change in price over the last N days.

Why it matters

The simplest momentum measure. Above zero, the price is higher than N days ago.

How to read it

Watch for the line crossing zero, and for new price highs that come with a lower reading (fading momentum).

Also called: ROC, momentum

Related

In the Cluenex app, this explanation opens next to every rate of change figure, with the live reading for the stock you are looking at. Open it in Cluenex