/**
* Rate of Change (ROC) Indicator
* Percentage change in price over a specified period
*/
export interface ROCData {
roc: number | null
signal: 'overbought' | 'oversold' | 'bullish' | 'bearish' | 'neutral' | null
}
export function calculateROC(closes: number[], period: number = 14): ROCData {
// Minimum 3 data points required
if (closes.length < 3) {
return {
roc: null,
signal: null,
}
}
// Use adaptive period
const effectivePeriod = Math.min(period, closes.length - 1)
const currentClose = closes[closes.length - 1]
const pastClose = closes[closes.length - effectivePeriod - 1] ?? closes[0]
if (!pastClose || pastClose === 0) {
return {
roc: null,
signal: null,
}
}
const roc = ((currentClose - pastClose) / pastClose) * 100
// Determine signal
let signal: 'overbought' | 'oversold' | 'bullish' | 'bearish' | 'neutral' | null = null
if (roc > 10) signal = 'overbought'
else if (roc < -10) signal = 'oversold'
else if (roc > 0) signal = 'bullish'
else if (roc < 0) signal = 'bearish'
else signal = 'neutral'
return {
roc,
signal,
}
}
