The Rate of Change indicator is basically identical in
principle to the momentum indicator, in that both measure how much a security's
price changes over a set period of time. One distinct difference with their
applications in Metastock, is that the rate of change can be measured in dollars
and cents as well as percentage.
The Rate of Change indicator simply measures how much a
security's price has changed over a set number of periods and represents the
change as either a percentage or actual number of cents.
SYNTAX ROC(Data Array, Periods, % $)
Data Array _ The change in this data array is being measured.
Periods _ This is how many periods are being used to
determine the change in the selected data array.
% $ _ This is how the change is going to be represented.
Either `%' or `$' is to be used but not both.
Here is an example of the Rate of Change indicator:
In the above example:
Data Array = C
Periods = 8
% $ = %
A more useful application of this example could be:
This formula checks that the change of the security's closing
price over the last 8 periods is greater than 5%.
article is a snippet from the
MetaStock Programming Study Guide...
The Simple Secret to Make Metastock Easy & Identify Profitable
copyright 2007 www.meta-formula.com