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Chart Decoder Series: Rate of Change: How Traders Measure Momentum Behind A Move

Bitfinex provides an educational guide on the Rate of Change (ROC) indicator, explaining how it measures price momentum speed to help traders distinguish genuine breakouts from false starts, using BTC/USD price action as a case study.

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Why It Matters

Understanding momentum indicators like ROC allows traders to identify trend acceleration or exhaustion, potentially reducing the risk of entering false breakouts.