Volume Rate of Change (VROC)

6 Des

Volume Rate of Change (VROC) is an indicator that calculates the percentage change in trading volume over a specific period, helping analyze market momentum and activity. It is calculated as:

VROC = ((Current Volume - Past Volume) ÷ Past Volume) × 100


This indicator shows changes in market interest. Positive values indicate increasing volume, while negative values signal a decrease. High VROC values often suggest potential trend reversals or breakouts.

Applications:

1. Breakout Validation: VROC > 200% confirms strong breakouts; below this may signal false moves.
   
2. Market Stagnation: VROC < 0% suggests shrinking volume and range-bound markets.
   
3. Trend End Alert: A drop below 0% during trends may indicate weakening momentum.
   
4. Adjusting for Timeframes: Tailor VROC to timeframes.
   

   Examples:
   Daily: VROC(5) compares with last week's same day; VROC(20) with 1 month ago.
   Monthly: VROC(12) compares with the same month last year; VROC(1) with last month.
   Intraday: VROC(24) (hourly) and VROC(288) (5 minutes) for the same time yesterday.