Rate-of-change-ratio

There are many different aspects of the market you have to monitor, whether it be investing or trading. The rate of change ratio is in regards to momentum. This is typically how quickly there is change over a period of time.

Updated over a year ago
View currently updated edicational stories
Filter Rate of change ratio
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Rifka Kats

For example, you may want to know what the rate of change is in a price. If you are focusing on momentum, you may want to know what the rate of change was in momentum between two quarterly earnings. The rate of change can bring telling signs about a company or how price is reacting to certain conditions.

Rate of change is important for investors because you want to begin spotting the changes in conditions as that may be an indication for you to take some chips off the table. Be sure to read up on the different types of changes and what that means for you as an investor.

Lastly, the rate of changes can be used as potential directional plays because it can signal if there is strength in the market or not. There is no one blanket statement on how rate of change should be used because it may be different depending on your situation. The goal here is to test it out with your current setup and beginning to see if it fits your current model. Macroaxis has wonderful tools throughout to help you narrow in on your search. Rate of change is a wonderful topic to know and will go a long way to increasing edge in the market.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com

Did you try this?

Run Correlation Analysis Now

   

Correlation Analysis

Reduce portfolio risk simply by holding instruments which are not perfectly correlated
All  Next Launch Module
Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any private could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.
You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

Other Consideration for investing

My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios