Online Trading Blog

Volume Rate of Change (VROC), also known as ROCV, is an important indicator of gauging an instrument's volume changes. VROC is most useful when analyzing a security's ability to cross supports/resistances, trend changes and trend strengths and when analyzing formations like peaks and foundations. Volume rate of change indicator resembles price rate of change indicator, but it is blind to price movements.


Volume Rate of change is calculated by dividing the amount of volume changed in the last 'n' periods, by the volume 'n' periods ago.


Positive values of VROC indicate that the present volume is higher than the volume 'n' days ago; and negative values vice versa. Positive values are indications that the current bullish/bearish trend is still strong, and negative values are indications of the weakening of existing trends.

VROC is plotted below the price chart. When trading with volume rate of change indicator, it is important to consider the number of periods. Shorter periods of 10 or 12 can show greater fluctuations in price trends and are more suitable for short-term traders like day traders. Longer periods of 30 or 50 will show a smoother trend and are suitable for long-term traders and investors.

NobleTrading.com Offers Online Stock Trading, Online Options Trading
Online Futures Trading, Online Forex Trading
Worldwide Brokerage Service, Day Trading Brokerage