The Moving Slope Rate of Change (MSROC) Indicator is discussed in the Two Moving Function Hybrids article written by William Rafter in the September 2005 issue of Technical Analysis of Stocks and Commodities magazine.
The MSROC is created by first calculating the linear regression slope over n-periods using the least squares fit method and then calculating the ROC of that regression line. Because of the use of the linear regression slope rather than raw price, it is smoother and more responsive than the Rate of Change (ROC) indicator.
Interpretation
Trading opportunities can be derived from the MSROC crossing above and below the zero line.
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