What’s rate of change

Rate of change is used to mathematically describe the percentage change in value over a defined period of time, and it represents the momentum of a variable. The calculation for ROC is simple in that it takes the current value of a stock or index and divides it by the value from an earlier period.

A rate of change is a rate that describes how one quantity changes in relation to another quantity. If x is the independent variable and y is the dependent variable, then. rate of change=change in ychange in x. Rates of change can be positive or negative.

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