ROCX: Absolute and Percentage Rate-of-Change Calculations

Summary

ROCX is a rate-of-change indicator that measures the difference between an applied price now and that price a chosen number of periods earlier. The document explains three display formats: the raw price difference, the difference as a percentage of the earlier price, and a scaled version equal to one tenth of that percentage. Users can configure the lookback period, the price series, and the display mode.

The calculation is a normalized price change when shown as a percentage, so its value depends on the earlier price as well as the lookback interval. The note distinguishes its formula from a common ratio form by expressing the change as a difference divided by the earlier value. It describes the indicator's construction, but gives no chart examples, trading rules, test results, or guidance for choosing parameters. ROCX therefore supplies a measurement tool rather than a complete strategy; interpretation and application require additional analysis.

Key ideas

• ROCX compares the applied price with its value a selected number of periods earlier.\nIt can display a raw difference, a percentage change, or a scaled percentage.\nThe calculation uses the earlier price as the denominator for normalized modes.\nThe indicator offers configurable lookback, applied price, and output mode.\nThe document provides no trading signal rules or performance evidence.

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