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Volume Based > Volume ROC

Article/Author: Omega Research Inc., 1997

Download: VOLUME-ROC.ELA

Category: Indicator > Volume Based

Description:

The Volume ROC indicator compares the most current bar’s volume to the volume of a bar in the past (default is 14 bars ago). The difference is calculated as a percentage and plotted as a histogram, and like an oscillator, fluctuates above and below a zero line. Volume can provide insight into the strength or weakness of a price trend. This indicator plots positive values above the zero line, and negative below.

Usage:

A positive value suggests there is enough market support to continue to drive price activity in the direction of the current trend. A negative value suggests there is a lack of support and prices may begin to become stagnant or reverse.




Inputs:

Price - Value used in calculating the Volume Rate of Change
Length - Bar (in the past) used to compare with the most current bar

EasyLanguage Code:

INPUTS: PRICE(VOLUME), LENGTH(14);
VARIABLES: VOLROC(0);

PLOT1(RATEOFCHANGE(PRICE, LENGTH), "VOLUME ROC");

{ALERT CRITERIA}
IF PLOT1 CROSSES OVER 0 THEN
ALERT("VOLUME RATE OF CHANGE HAS CROSSED OVER ZERO")
ELSE
IF PLOT1 CROSSES UNDER 0 THEN
ALERT("VOLUME RATE OF CHANGE HAS CROSSED UNDER ZERO");