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Constructing Rate of Change Measurements

Rate of change measurements can be made for any period of time and can be based on hourly, daily, weekly, or monthly data. In my own work, I frequently employ daily closing prices of key market indices or levels of the advance-decline line (a cumulative total of advances minus declines on the NYSE or on Nasdaq) as my data stream.
I have found ten-day rate of change readings to be helpful for shorter-term trading and 21-day to 25-day rate of change readings to be useful for intermediate-term trading. It is helpful to maintain both shorter- and longer-term rate of change measurements. Often changes in direction in the shorter-term readings presage subsequent changes in the direction of longer-term rate of change measurements.