Volume roc

Volume ROC = ((Volume - Volume n-periods ago )/ Volume n-periods ago) *100
Interpreting the Volume ROC ...

Volume ROC
V-ROC is the indicator that shows whether or not a volume trend is developing in either an up or down direction. The Volume ROC shows the speed at which volume is changing.

To calculate the Volume ROC indicator you should divide the amount that volume has changed over the last "n periods" by the volume "n periods" ago. The result is the percentage that the volume has changed in the latest "n periods".

The following chart shows Texas Instruments and its 12-day Volume ROC.
When prices broke out of the triangular pattern, they were accompanied by a sharp increase in volume. The increase in volume confirmed the validity of the price breakout.

Many traders believe that significant chart formations (e.g., breakouts, reversals, tops, bottoms etc) are usually accompanied by an increase in volume, and the Volume ROC essentially shows the speed at which volume is changing.

See also: Chart, Volume, Breakout, Rate, Break