ROC (10)

Momentum

Rate of Change: the percentage price difference relative to 10 days ago. The simplest momentum indicator there is — and therefore often one of the most honest.

Construction & calculation

Divide today's closing price by that of 10 trading days ago.
Subtract 1 and multiply by 100: the result is the return over that period.

ROC = 100 x (C(today) - C(10 days ago)) / C(10 days ago)

Interpretation

ROC above zero = the price is higher than ten days ago: positive momentum.
An accelerating ROC (ever higher positive values) points to a self-reinforcing move.
If the ROC flattens while the price is still rising, momentum is drying up.

How the signal works in this scanner

Buy signal (green)The ROC moves from negative to at least +2%: a clear reversal, not noise around the zero line.

Sell signal (red)The ROC moves from positive to at least -2%.

Watch-outs & pitfalls

The 2% threshold is there precisely to avoid the back-and-forth flapping around the zero line. Without that filter the ROC would give dozens of signals a year in a quiet market.
The ROC ignores volatility: 2% is a lot for a utility stock and little for a biotech name.

Data note. The scanner works exclusively with closing prices (daily). Wherever the classic formula needs High, Low or Volume, these are approximated: the daily range via the rolling max/min of the closing price over the recent bars, and volume via the relative size of the day's move compared with the recent average. The signal logic is identical to the original, but absolute values may differ slightly from platforms that use intraday data and real volume.

Disclaimer. This explanation is educational and does not constitute investment advice. A technical signal is a probability, not a certainty: always use it together with other signals, the broader trend, the news around the stock and a predefined risk-management plan.

Generated: 26/10/2026 12:04