If ship A were to orbit ship B at a speed of 1000m/s and at a constant distance of 1000m, ship A's angular velocity would be 1 radian per second. A complete orbit is equal to 2*pi radians. So ship A would take 6.28 seconds (2*pi) to orbit ship B once.
If ship A were to orbit at 500m/s instead of 1000m/s, its angular velocity would be 500m/1000m = 0.5 rad/s.
If ship A were to move at 1000m/s toward or away from the target but 0m/s perpendicular to the target, it's angular velocity would be 0 regardless of distance.
Where it is found in EVE
If you want to avoid being shot by turrets in eve, you want to maximize your angular velocity. The closer you are to your target and the faster you move perpendicular to your target, the higher your angular velocity.
Some modules modify the angular velocity at which you or your opponent's guns can track their targets, such as tracking disruptors.
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