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What is the 2-period ROC?

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What is the 2-period ROC?

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The 2 period Rate-of-Change is today’s close minus the close two days ago. For example, to get Friday’s 2-period ROC, you would subtract Wednesday’s close from Friday’s close. The 2-period ROC is useful in highlighting a two to three day trading cycle as explained in the Taylor Trading Technique. Raw momentum is the only derivative of price that we have found to offer statistically significant results in our quantitative research. Our results with this indicator have proven to be durable and robust across all markets.

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