Category: Indicator > Volume Based
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.
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.
Price - Value used in calculating the Volume Rate of Change
Length - Bar (in the past) used to compare with the most current bar
INPUTS: PRICE(VOLUME), LENGTH(14);
PLOT1(RATEOFCHANGE(PRICE, LENGTH), "VOLUME ROC");
IF PLOT1 CROSSES OVER 0 THEN
ALERT("VOLUME RATE OF CHANGE HAS CROSSED OVER ZERO")
IF PLOT1 CROSSES UNDER 0 THEN
ALERT("VOLUME RATE OF CHANGE HAS CROSSED UNDER ZERO");