Rate Of Change
Definition of 'Rate Of Change'The speed at which a variable changes over a specific period of time. Rate of change is often used when speaking about momentum, and it can generally be expressed as a ratio between a change in one variable relative to a corresponding change in another. Graphically, the rate of change is represented by the slope of a line. |
|
Investopedia explains 'Rate Of Change'Rate of change is often illustrated by the Greek letter delta. Many traders pay close attention to the speed at which one variable changes relative to another. For example, option traders study the relationship between the rate of change in the price of an option relative to a small change in the price of the underlying asset, known as an options delta. |
Related Definitions
Articles Of Interest
-
Simple Moving Averages And Volume Rate-of-Change
We teach you how to confirm buy and sell signals by comparing two very simple indicators. -
Measure Momentum Change With ROC
Learn how to build a price rate of change indicator and incorporate it in your strategy. -
Divergences, Momentum And Rate Of Change
Divergences may signal a change in market direction, but traders must also identify the speed of that change. -
What technical tools can I use to measure momentum?
One of the main goals of every trader using technical analysis is to measure the strength of an asset's momentum and the likelihood that it will continue. This is the primary purpose of indicators ... -
Basic Investment Objectives
You might know about different asset types, but do you know how each type contributes to a particular goal? -
Exploring The Current Account In The Balance Of Payments
Learn how a country's current account balance reflects the country's economic health. -
Low Expense Top Performing ETFs
A technical look at the four ETFs that rank highest for five-year performance, lowest expense ratio and total net assets. -
Break Into Forex In 12 Steps
Learn how to get started in forex trading. -
Market Summary For June 7, 2013
The major U.S. indices were mixed this week as modest improvements in employment numbers struggled to offset stagnant wages and a slightly higher unemployment rate. -
Stocks With Bullish MACD Crossovers
One of the most popular trading indicators is the MACD, and right now it's flashing a bullish signal in these four stocks.
Free Annual Reports