# Rate of Change (RoC)

> ROC (Rate of Change) measures the percentage price change over a period to identify trend momentum, overbought zones, and reversals in Veles bots.

**ROC (Rate of Change)** is a technical analysis indicator that shows the percentage change in an asset's price over a specified period of time. It helps traders assess market dynamics, identify trend accelerations or decelerations, and identify overbought and oversold zones.

The Veles platform uses a period of **9 candles** for ROC.

## How ROC Works

The ROC value is calculated using the formula:

```
ROC = [(Current price - Price N periods ago) / Price N periods ago] × 100%
```

Where *N* is the selected period (e.g., 9 candles).

ROC is expressed as a percentage and shows the speed and direction of price change:
- **Positive value** → the price has increased relative to the previous period
- **Negative value** → the price has decreased relative to the previous period
- **The higher the absolute ROC value, the higher the volatility**

## Using ROC in Trading

### 1. Trend Determination

- **ROC Rising** → Strengthening bullish trend
- **ROC Falling** → Strengthening bearish trend

### 2. Overbought and Oversold Zones

- **Too high positive values** may signal an overheated market (overbought)
- **Too low negative values** may indicate excessive selling (oversold)

### 3. Divergences

If the price makes a new high or low, but the ROC doesn't confirm this, this may signal a weakening trend and a possible reversal.

### 4. Zero Line Crossover

- **Bottom-to-top** → Buy Signal
- **Top-to-bottom** → Sell Signal

## Usage Recommendations

- On short timeframes, ROC is sensitive to noise – use additional filters (e.g., [SMA](https://help.veles.finance/en/filters/sma/), [EMA](https://help.veles.finance/en/filters/ema/), [RSI](https://help.veles.finance/en/filters/rsi/))
- On higher timeframes, the indicator better displays global trends
- Works effectively in conjunction with oscillators ([RSI](https://help.veles.finance/en/filters/rsi/), [MACD](https://help.veles.finance/en/filters/macd/)) and trend indicators to filter out false signals

*This indicator is available under the name “ROC” in the Veles platform's indicator list.*

## Limitations

- ROC is sensitive to individual price spikes — a single outlier candle can distort the signal significantly.
- On short timeframes, the indicator generates considerable noise; additional filters are essential.
- The fixed 9-candle period on the Veles platform may not be optimal for all assets or timeframes.

## Using in Veles Bots (Flexible Indicator)

- Period - the number of candles for calculation. Range: 1–200, default 9.
- Interval - the candle timeframe.
- Method - the calculation type. By bar close (only on the selected interval) or by minute (once per minute for any interval).
- Shift - shifts the requested indicator value back by the specified number of candles.

## Summary

The Rate of Change indicator provides a straightforward percentage-based view of price momentum. With a fixed 9-candle period in Veles, it is best used alongside trend indicators or oscillators to confirm entry timing and filter out low-conviction moves.