Rate of Change with a Moving Average Signal Line

Summary

This note describes a Rate of Change (ROC) oscillator paired with a moving average signal line. ROC measures the percentage change in closing price relative to the close a chosen number of bars earlier; the signal line smooths the ROC series using a selected moving average method and period.

The indicator has three configurable inputs: the ROC lookback, the signal moving average period, and the moving average calculation method. The document gives the calculation definitions but does not explain trading rules, signal interpretation, performance evidence, or how parameter choices should be made. It therefore describes an indicator component rather than a tested strategy.

Key ideas

• ROC expresses the closing-price change over a lookback as a percentage of the earlier close.
• A moving average of the ROC series provides the signal line.
• The indicator exposes a lookback period, a signal period, and a moving average method as inputs.
• The document does not provide trading rules or performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.