Smoothed Rate of Change

Momentum

The same ROC, but the price is smoothed first. The result is a far calmer momentum line with considerably fewer false crossings.

Construction & calculation

First compute an SMA(10) of the closing prices.
Then apply the ROC(10) to it — so the percentage change of the average, not of the price itself.

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

Interpretation

The zero-line crossing is the signal: above zero momentum is winning, below it momentum is losing.
Because of the prior smoothing the signal comes a few days later than with the plain ROC, but it is considerably more reliable.
Very usable as a trend filter for faster systems.

How the signal works in this scanner

Buy signal (green)The S-ROC crosses the zero line from below to above within the last 15 bars and is still above it.

Sell signal (red)The S-ROC crosses the zero line from above to below and stays below it.

Watch-outs & pitfalls

Slow by nature. Do not expect bottom timing here, but confirmation of a trend change.

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