Smoothed S-RoC as a Relative Price Increment Indicator

Summary

The document describes ColorSRoC, a smoothed version of the S-RoC indicator for relative price increments, attributed to Fred Shutsman. It identifies the calculation as a comparison between an exponential moving average on the current bar and the same EMA from a number of bars earlier, with the lookback distance determined by a rate-of-change period. This frames the indicator as a measure of how the smoothed price series has changed over time.

The text provides variable definitions but omits the displayed formula itself, leaving the exact normalization or final calculation unclear. It also points to a supporting averaging library and an illustration, but includes no signal interpretation, parameter guidance, trading rules, backtest, or evidence of predictive performance. Readers can infer the indicator's inputs at a high level, but should not treat the note as a complete specification or as validation that the measure is useful for trading.

Key ideas

• ColorSRoC is presented as a smoothed relative price increment indicator.
• Its calculation compares the current exponential moving average with an earlier value of that same average.
• The lookback distance is set by a rate-of-change period.
• The formula is missing from the text, and no signal rules or performance evidence are supplied.

Tags

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