how do traders use the price rate of change indicator 
the price rate of change roc indicator is used in technical analysis to measure momentum a positive roc can confirm a bullish trend while a negative roc indicates a bearish one when the price is consolidating the roc will hover near zero the bottom linerate of change roc is an important concept that tells us not just that things are changing but how fast things are changing it doesn t measure the magnitude or size of the change instead rate of change shows how quickly or slowly that change is happening over time the rate of change can be used in many mathematical or scientific contexts in finance it is often used by traders to understand changes in price returns and identify the momentum of market trends for example if the rate of change of an index is over 50 this can indicate that the current trend is a bubble rather than a sustainable long term change 