Rate of Change: Reading Pure Price Momentum | Technical Analysis
TL;DR
Rate of Change: Reading Pure Price Momentum Rate of Change is one of the most-used — and most-misused — tools in technical analysis. In this episode we break it down for serious traders: the intuition and the math, how to read it, real entry and exit signals, an analogy that makes it click, a worked example, and the pitfalls to avoid.
“Rate of Change: Reading Pure Price Momentum Rate of Change is one of the most-used — and most-misused — tools in technical analysis. In this episode we break it down for serious traders: the intuition and the math, how to read it, real entry and exit signals, an analogy that makes it click, a worked example, and the pitfalls to avoid.”Click to post on X ▸
Where this fits in the Confluence Method
This lesson lives in the Stack step of the Confluence Method, where you confirm price action and structure, momentum and a trigger before a setup qualifies as a trade.
Read the full method ▸Full transcript
2 sections0:00Welcome back. Rate of change — the purest measure of price momentum there is. ROC simply asks how much price has changed, in percent, over a set number of bars. Above the zero line, price is higher than it was and momentum is positive; below zero, it's negative. The slope matters too: when ROC accelerates, the move is gaining strength; when it flattens near zero, momentum is stalling and a reversal or pause may be near.
0:27Use the zero-line cross for momentum shifts and the slope for strength. Next: the money flow index.
