froc divides a value by another value a set number of periods
in the past. EAS calculates the ROC as a recent
price minus by a past price, multiplied by 100.
A rising or falling line indicates that the analyzed data is
accelerating or decelerating, while a constant ROC value indicates that the rate is
constant. If the ROC is constant it means that the data being plotted is either
rising or falling at some constant rate. If ROC is zero and constant - price is
level.
The example below shows ROC's of both price and volume. Color is an added input to this
function. The ROC is plotted as a thick line and an EMA of the ROC is provided as a
signal line. This smoothing technique is used in many EAS indicators.
Note that the data for each ROC shown in the chart was input as an EMA. This technique
usually helps to smooth input data so the resulting plot is not as choppy.
data
The View title displays the name of the indicator and the
ROC and EMA signal line lookback periods.
The Titlebar Chart Code for this indicator is proc or vroc
for price and volume ROC's, respectively. (see EAS Titlebar Chart Codes)
Inputs
p1p0 defines the EMA signal line lookback period.
Choices for color are: "blue", "red", "green", "black" and "purple". color
must be input as a character matrix. The ROC color and signal line color are automatically
set by these inputs.
Output Data & Plotting
returnflag is set to "data" a (b-a+1)-row by 2-column matrix of data
will be returned. The output is only valid for data points beyond the
lookback period, p0+p1, in time. The first column of the output is
the value of the ROC line at any given point in time, the second column is the value of the
EMA signal line.
| Equis.com Price ROC |
| Equis.com Volume ROC |
| "Technical Analysis Explained, 3rd Ed", by Pring, McGraw/Hill, 1991 |