MOMENTUM INDICATOR
Rate of Change
Expresses price change over a fixed lookback as a percentage.
Start with the input, not the story.
Magnitude and direction of change from N periods ago.
Plain-language formula
(Current close - close N periods ago) / close N periods ago x 100.
Platform implementations can differ in price input, smoothing, indexing and rounding. Record the exact settings and provider before comparing results.
03 / USEFUL REGIME
Where it may help
Cross-pair momentum ranking and regime filters.
04 / WEAK REGIME
Where it struggles
Lookback sensitivity and abrupt changes as the reference observation rolls off.
Add a different measurement.
ATRTrend filterRank rules
A complementary tool should answer a different question, such as volatility, regime or position risk. Test the base rule before testing the combination.
The shortcut to avoid
Comparing raw price changes across pairs instead of percentage or volatility-normalised changes.
A testable next step
Compare raw ROC with ATR- or volatility-normalised momentum.