Percent change

Also seen as: percentage change, % change, price change, rate of change.

How is percent change calculated?

Percent change is the difference between the current value and the earlier value, divided by the earlier value.

where: $P_t$ is the latest value of the series, $P_{t-N}$ is its value $N$ periods earlier, and $N$ is the lookback the Period field sets. The denominator is always the earlier value, which is why the same absolute move is a bigger percentage from a lower base.

What does a positive or negative reading mean?

A positive percent change means the series ends the window above where it started; a negative one means it ends below. Zero means it is back where it began, whatever happened in between — percent change compares only the two endpoints and knows nothing about the path between them, so a series that fell hard and fully recovered reads the same as one that never moved. Read it alongside a path-aware measure such as max drawdown if the journey matters as much as the endpoint.

This page describes a measurement, not a recommendation — Fincanva does not give investment advice. See Is this financial advice?.

Defaults in Fincanva

• Percent change is one of four Indicator options on a risk condition's series, alongside "Raw price", "Simple moving average", and "Average momentum".
• With "Percent change" selected, a Period field appears next to the indicator; you type how far back the comparison reaches.
• The indicator only transforms the series being watched. Whether the strategy ends up in Risk-On or Risk-Off is decided by the condition's thresholds, not by the change reading itself.
• The shipped "S&P 500 12-month momentum" risk template is a 12-month percent change of the index.

Worked example

An index stands at 4,400 today and stood at 4,000 twelve months ago. The 12-month percent change is (4,400 − 4,000) / 4,000 × 100 = +10% — the index is 10% above its level a year earlier. Now suppose it instead stands at 3,600 after that same year: the reading is (3,600 − 4,000) / 4,000 × 100 = −10%. The two readings are symmetric in wording but not in level: a −10% move from 4,000 lands at 3,600, and a +10% move back from 3,600 only reaches 3,960, not 4,000, because the second percentage is measured against the smaller base.