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ROC vrs Price Performance

JJJJ
JJJJ ✭
in Using Technical Analysis
How is rate of change different from price performance ?

Comments

  • markd
    markd mod
    edited April 13
    Rate of change is the absolute change in price over a period of time. So, if you are measuring over 1 month, and price goes from 10 to 11, the ROC is 10%

    Price performance is the comparison of the price change to a benchmark, like an index or another symbol.
    If the benchmark went from 100 to 120, it's ROC is 20%.

    So the the price performance of the symbol versus it's benchmark is 50%, meaning it did only half as well as its benchmark.
  • lmkwin
    lmkwin ✭✭
    My understanding is that, on the chart, the Price Performance indicator displays a value that starts at 0% on the left of the chart and progresses across the time period of the chart. The value shown is the performance for the time period of the chart. You can use any symbol or ratio symbol as the parameter

    The ROC is a specific period of the parameter that you use for the chart symbol. The value shown is the rate of change/performance of the specific period you choose.



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