Momentumdraws in its own pane

Percent change from N bars ago. The simplest momentum reading there is — and the building block inside half the others.

On this chart: 12 periods.

Rate of Change is exactly its name: today's close versus the close 12 bars ago, in percent. No smoothing, no scaling. Zero means price is where it was 12 bars ago; the sign is the direction and the magnitude is the pace.

Crossings of zero mark 12-bar momentum flipping direction. The shape matters more than any level: ROC making lower highs while price makes higher highs means each push is covering less ground.

Mostly a context reading: steep negative ROC quantifies how fast a name has repriced, which is the same condition that inflates its implied volatility. It pairs naturally with the ATR for translating "how fast" into strike distances.

Like everything in this guide, these are descriptions of conditions and reference levels — context for your own decisions, not instructions to trade.