Volume Rate of Change:
Since now we have a possibility of using real volumes too (where
it is provided by the broker), seems that the Volume Rate of Change
indicator becomes interesting to be used.
The Volume Rate of Change indicator (VROC) measures the rate of
change in volume over the past "n" sessions. In other words, the VROC
measures the current volume by comparing it to the volume "n" periods or
VROC can be a powerful technical indicator. When the rate of change
is high, you can then compare price to any technical support or
resistance levels or use any other price based technical indicators as
In such circumstances, the Volume Rate of Change indicator can tell
you ahead of time whether the support or resistance levels can be
breached and can confirm trends as well.
The Volume Rate of Change indicator can be used in a number of ways.
There are quite a few trading strategies that also employ the
information from the VROC indicator.
Most commonly, the Volume Rate of Change indicator can be used to
determine fake breakouts in the market. When markets are trading at a
new high, volume is typically stronger. This validates the high and new
interest in the security pours in pushing volume higher.
However, when volume fails to validate a new high, you can expect to see a correction in the price.
Author: Mladen Rakic
Is this directional when below zero the bear has the control of the volume and vice versa?