Smoothed rate of change
Rate of Change calculated on a smoothed (EMA) price series instead of raw price, filtering out some of ROC's noise.
What the numbers mean
Two settings: the EMA period that smooths price first, and the lookback over which the rate of change is then measured. Smoothing before measuring is the entire point — it removes the single-bar spikes that make plain ROC hard to read.
- 13 — the EMA period that smooths price first
- 21 — the rate-of-change lookback applied afterwards
- Smoothing before measuring is the whole point; it removes single-bar spikes
How it is used
Used the same way as ROC, mainly for zero-line crossings and divergence, but with far fewer false flips.
- Zero crossings, with far fewer false flips than plain ROC
- Divergence against price, which is easier to see on the smoother line
How it relates to everything else
SROC trades earliness for reliability against ROC, in the same way TRIX does against MACD. It describes a move already well under way, so it belongs with trend confirmation tools rather than with entry triggers.
- Quieter than ROC, and correspondingly later
- Same trade-off TRIX makes against MACD
- Pair with a faster oscillator if timing matters
What to watch for
The pre-smoothing pushes every signal later. It is a cleaner picture of a move that is already well under way.