The Smoothed ROC (Rate of Change) indicator, developed by Fred Schutzman, is described in the book “How to play and Win on the stock exchange”. The indicator calculates the rate of change of the exponential moving average from the closing prices. When the trend direction changes, it helps to identify and confirm the trend change.

Parameters:

• Smoothing_EMA_Length (13) – The EMA averaging period;
• ROC_Period (21) – The calculation period of the Rate of Change indicator.