ROC -- Rate of Change

Contents

• Format
• ROC Interpretation
• Understanding Operators with ROC
  • < Less Than
  • > Greater Than
  • cross_below
  • cross_above
  • = Equal
• TOML Examples
  • Buy After a Sharp Dip
  • Sell When Momentum Weakens
  • Buy on Zero-Line Recovery
  • Sharp Dip with Consecutive Candle Confirmation
• Tips

Overview

Rate of Change (ROC) measures the percentage change in price over the last N candles. It answers a simple question: how much has the price moved, in percentage terms, over a fixed lookback period?

The calculation is straightforward:

ROC = ((current_price - price_N_candles_ago) / price_N_candles_ago) * 100

• ROC of -5 means price has dropped 5% over the lookback period.
• ROC of 3 means price has risen 3% over the lookback period.
• ROC of 0 means price is unchanged.

Unlike bounded oscillators (RSI, StochRSI), ROC has no fixed range. It can be any positive or negative value. A flash crash could produce ROC of -20 or worse. This makes ROC uniquely suited for detecting the magnitude of price moves -- you set the threshold based on what you consider a significant move for the asset and timeframe you are trading.

Format

roc_{period}

The period defines how many candles back ROC compares the current price to.

Period range: 1 to 200.

Value range: Unbounded (any positive or negative number, expressed as a percentage).

ROC Interpretation

Understanding Operators with ROC

Each operator behaves differently with ROC. Because ROC is unbounded, careful threshold selection is critical.

< (Less Than) -- State-Based

What it does: The trigger is true on every candle where ROC is below the threshold.

On the chart: Price has been dropping. ROC dips below your threshold (say, -5). For every candle that ROC remains below -5, this trigger fires. This captures the entire duration of the dip, not just the initial plunge.

[[actions.triggers]]
indicator = "roc_10"
operator = "<"
target = "-5"
timeframe = "15m"

> (Greater Than) -- State-Based

What it does: The trigger is true on every candle where ROC is above the threshold.

On the chart: Price has been rising. ROC exceeds your threshold (say, 3). Every candle it stays above 3, this trigger fires.

[[actions.triggers]]
indicator = "roc_10"
operator = ">"
target = "3"
timeframe = "15m"

Typical use: Momentum confirmation for exits -- sell when upward momentum is strong. Or as a breakout filter -- only enter when price is moving decisively upward.

cross_below -- Event-Based

What it does: Fires once, at the exact candle where ROC transitions from above the threshold to below it. The previous candle had ROC >= the target, and the current candle has ROC < the target.

On the chart: ROC was hovering above zero and suddenly drops below zero. The moment it crosses the line, the trigger fires once.

[[actions.triggers]]
indicator = "roc_10"
operator = "cross_below"
target = "0"
timeframe = "1h"

Typical use: Detect the zero-line crossing. ROC crossing below 0 means price is now lower than it was N candles ago -- momentum has turned negative. This is a clean trend-change signal without the noise of staying in a zone.

cross_above -- Event-Based

What it does: Fires once, at the exact candle where ROC transitions from below the threshold to above it. The previous candle had ROC <= the target, and the current candle has ROC > the target.

On the chart: ROC was negative and climbs back above zero. The crossing moment is the trigger.

[[actions.triggers]]
indicator = "roc_10"
operator = "cross_above"
target = "0"
timeframe = "1h"

Typical use: Detect momentum recovery. ROC crossing above 0 means price is now higher than it was N candles ago -- momentum has turned positive. This signals the beginning of a potential upward move.

= (Equal) -- Not Recommended for ROC

Why: ROC produces floating-point values. Exact equality (e.g., roc_10 = 0) will almost never be true because ROC values are calculated to many decimal places. Use cross_above or cross_below with a target of 0 to detect zero-line crossings instead.

TOML Examples

Buy After a Sharp Dip

Enter when price has dropped 5% over the last 10 candles on the 15-minute chart. This targets sharp, rapid dips that often precede bounces.

[[actions]]
type = "open_long"
amount = "100 USDC"

  [[actions.triggers]]
  indicator = "roc_10"
  operator = "<"
  target = "-5"
  timeframe = "15m"
  max_count = 1

Sell When Momentum Weakens

Exit the position when upward momentum fades. ROC crossing below 0 means the recent rally has stalled and price is now below where it was 10 candles ago.

[[actions]]
type = "sell"
amount = "100%"

  [[actions.triggers]]
  indicator = "roc_10"
  operator = "cross_below"
  target = "0"
  timeframe = "1h"

Buy on Zero-Line Recovery

Wait for ROC to cross back above zero after a dip. This confirms that the price drop is over and momentum is turning positive, rather than trying to catch a still-falling knife.

[[actions]]
type = "open_long"
amount = "75 USDC"

  [[actions.triggers]]
  indicator = "roc_10"
  operator = "cross_above"
  target = "0"
  timeframe = "15m"

Sharp Dip with Consecutive Candle Confirmation

Combine ROC with a consecutive red candles trigger for higher-conviction dip entries. This fires only when price has dropped 3% and there have been 5 consecutive bearish candles -- confirming a real sell-off rather than a single volatile candle.

[[actions]]
type = "open_long"
amount = "100 USDC"

  [[actions.triggers]]
  indicator = "roc_10"
  operator = "<"
  target = "-3"
  timeframe = "15m"
  max_count = 1

  [[actions.triggers]]
  type = "consecutive_candles"
  direction = "bearish"
  count = 5
  timeframe = "15m"

Tips