Rate of Change


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Rate of Change

In technical analysis, a measure of how fast the price of a security changes over time, expressed as a fraction or decimal. It is calculated as follows:

Rate of change = (closing price today - closing price X days ago) / closing price X days ago
References in periodicals archive ?
Simplifying, and expressing the relationship in risk premia for, we obtain: [10] [Mathematical Expression Omitted] where [Mathematical Expression Omitted] Hence, consistent and unbiased estimates of CAPM parameters can be obtained by relating the rate of change in the geometric mean of asset value to the geometric mean of the true periodic rates of return for the market portfolio and risk-free asset.
multifactor productivity, [the rate of change of A] / A, plus the percentage rate of change in the capital-labor ration, [the rate of change of K] / K - [the rate of change of L] / L, times the share of capital in output, S.
When the data is presented in a rate of change format you can easily see how the peaks or troughs in one data series lead the peaks or troughs in the second data series.