Engineering Alpha

Engineering Alpha

The Rate of Change Indicator. Another View on Momentum

Coding the Known Rate of Change Indicator in Python

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Mar 15, 2022
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Momentum has many angles and can be measured in many ways. Also, many strategies can be elaborated on this great concept. In this article, we will discuss a famous momentum indicator called the rate of change and then see how it can be used in two different strategies, mean-reversion and momentum flip.

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