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 Commentary
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 Links
Divergences, Momentum And Rate Of Change
Rate Of Change (ROC)
Simple Moving Averages and Volume Rate-of-Change
See also: Momentum, Simple Moving Average - SMA, Technical Analysis, Underlying, Volume
Also spelled: ROC