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ROCP

Type: rocp • Category: indicators

Description​

Rate of Change Percentage

Parameters​

NameTypeDescriptionRequiredDefault
dataExpstringprices datano
pricestringPrice field to use to calculate ROCPno
timeperiodnumberNumber of periods to use for ROCP calculationno10

Help​

ROCP

Rate of Change Percentage​

The Rate of Change Percentage (ROCP) is a momentum indicator used in financial analysis to measure the percentage change in price over a specified period of time.

Description​

The ROCP indicator calculates the percentage change in price from a specified number of periods ago. It is used to identify trends, momentum, and potential buy and sell signals.

What does this worker do?​

The ROCP worker takes in the following parameters:

  • dataExp: prices data
  • price: Price field to use to calculate ROCP
  • timeperiod: Number of periods to use for ROCP calculation

It then calculates the percentage change in price over the specified period of time and returns the result.

How to interpret the results​

The ROCP indicator can be interpreted in the following ways:

  • A positive ROCP indicates an upward trend, while a negative ROCP indicates a downward trend.
  • A ROCP above a certain threshold (e.g. 10) may indicate overbought conditions, while a ROCP below a certain threshold (e.g. -10) may indicate oversold conditions.

How to use it​

To use the ROCP worker, simply provide the required parameters:

ROCP(dataExp, price, timeperiod)

For example:

ROCP(data, 'Close', 14)

This will calculate the 14-period ROCP using the 'Close' price field.

Visualizing the ROCP Indicator​

The ROCP indicator can be visualized using a chart. Here is an example of how to use the ROCP indicator:

How to use ROCP

And here is a shorter version:

Short ROCP example

Additional Information​

The ROCP indicator was developed by J. Welles Wilder, a well-known technical analyst. It is commonly used in technical analysis to identify trends and potential buy and sell signals.

Example Use Cases​

  • Identifying trends: A rising ROCP indicates an upward trend, while a falling ROCP indicates a downward trend.
  • Identifying overbought and oversold conditions: A ROCP above a certain threshold may indicate overbought conditions, while a ROCP below a certain threshold may indicate oversold conditions.

By using the ROCP worker, you can easily incorporate this powerful momentum indicator into your financial analysis and trading strategies.