The Volume Rate of Change (VROC) indicator for MetaTrader 4 is a multipurpose technical studies that is built on the standard that key price reversals are usually characterized by heavy volumes, particularly at their troughs and peaks.
More weight or validity is added to the reversal upon confirming change in price with volume.
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Download the “VROC.ex4” MT4 indicator
Example Chart
The VROC indicator rises when the current volume surpasses what it was previously and the VROC indicator is in a decline when the current volume is lower than what it previously was.
This is to say that the VROC indicator spots volume increase that are cited at important peaks or troughs and also during breakouts.
The VROC indicator employs an easy calculation in which the volume of the previous specified periods minus the volume of the current bar, divided by volume n bars ago and multiplied by 100.
The trading indicator comes with a default “PeriodROC” value of 25 and this can be tweaked. For short term outlook, distinctive values should be between 10 -15 bars.
The problem with this value is that sudden peaks are created as a result of sudden price change.
Long term outlook such as those of daily, weekly or monthly time frames should adopt a “PeriodROC” value of 20 and above.
For a more realistic view, I’ll employ chartist to use a 25 – 30 day period; this is because this length of time allows the chart display a smoother and a more rounded view.
Altering the values of the “PeriodROC” in the indicator’s parameter setting can alter the indicator’s sensitivity.
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Download the “VROC.ex4” MT4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (PeriodROC), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: volume, trend
How to install the Volume Rate of Change custom indicator in Metatrader 4?
- Download the Volume Rate of Change indicator to your computer.
- Open your Metatrader 4 platform.
- Open the data folder from the top menu.
- Open the MQL4 folder.
- Open the indicators folder.
- Paste the indicator file in this folder.
- Restart the trading platform.
- Open any trading chart.
- Attach the indicator to the chart.