The Price Rate of Change (ROC) oscillator is a momentum indicator commonly used in technical analysis. It offers investors and traders an insight into market trends, and can help to determine if prices are currently rising or falling. The indicator calculates the rate of change of the most recent closing price to the closing price n periods back. The default number of periods used is 14, and the indicator normally displays a zero line at its center that represents when the rate of change is zero.

In general, when the indicator is rising above the zero-level line, it is generally indicative of an uptrend in price action, while a reading below the zero-line suggests a downward trend. When the indicator is moving up from a downward spiral, this could be indicative of a possible trend reversal.

The ROC oscillator can be used to filter out insignificant price movements from overall price trends to identify meaningful patterns. It can also be used to define a security's resistance and support levels that traders can use to make strategic moves. This allows them to stay in the market when the underlying security’s price is in an uptrend, and exit when it is in a downtrend.

Although the ROC oscillator can offer valuable insight into market trends, it is not always a reliable indicator on its own. During periods of sideways or range-bound price action, the ROC oscillator may remain near the zero line, providing no valuable insight. Since the indicator does not take into account an asset’s actual price level, it is important for traders to also monitor the longer-term trend. By taking into account both its overall performance and the ROC oscillator’s position, traders can make more informed decisions in trading.

Overall, the Price Rate of Change (ROC) oscillator is a useful tool when it comes to gauging market momentum. By factoring in both its indications and its current position, traders can make better informed decisions.