Volume Rate of Change (VROC) measures the percentage change in volume over a specified period. It identifies volume acceleration and deceleration patterns, helping traders detect shifts in market interest and potential trend confirmations.
Key Use: Identify volume momentum shifts and confirm price trends with accelerating volume.
VROC = ((Volume - Volume[n periods ago]) / Volume[n periods ago]) × 100
Where n is typically 10, 12, or 14 periods
Positive VROC
Volume increasing above prior levels - bullish interest.
Negative VROC
Volume declining below prior levels - waning interest.
| Period | Description | Best For |
|---|---|---|
| 10 | Short-term volume momentum | Day/swing traders |
| 12 | Standard momentum period | General trading |
| 14 | Longer-term view | Position traders |
Trend Confirmation
Rising price with positive VROC confirms strong uptrend; rising price with negative VROC signals weakness.
Volume Divergence Detection
Price hits new high but VROC declines - potential reversal warning.
Breakout Validation
Confirm price breakouts with positive VROC spike above zero line.
✓ Advantages
⚠ Limitations