Volume Rate of Change
This is a powerful addition to your MetaTrader 5 toolkit designed to optimize market analysis and performance. This technical indicator acts as a specialized analysis tool designed to visualize market data. It helps traders identify emerging trends, momentum shifts, and key support or resistance levels by plotting statistical calculations directly onto price charts.
How to Setup and Use Volume Rate of Change
1. Installation: Place your file in the MQL/Indicators folder via "Open Data Folder" and restart your terminal.
2. Loading: Find the indicator in the Navigator, drag it onto your chart, and configure the input parameters in the popup window.
3. Customization: Press Ctrl+I to open the indicator list, select your tool, and click "Properties" to change colors, levels, or visual styles.
4. Updating: Replace the old file in the Indicators folder with the new version and restart the platform to apply changes.
Frequently Asked Questions
Q: Why is my indicator not showing? A: Verify the file is in the MQL/Indicators folder, or try right-clicking the "Indicators" tree in the Navigator and clicking "Refresh."
Q: Do custom indicators slow down the platform? A: Too many complex indicators can impact performance; remove unused ones via the "Indicator List" (Ctrl+I).
Q: Can I use MT4 indicators on MT5? A: No, MQL4 and MQL5 are distinct languages; ensure the indicator is compiled specifically for your platform version.
Description & Settings
Since now we have a possibility of using real volumes too (where it is provided by the broker), seems that the Volume Rate of Change indicator becomes interesting to be used.
The Volume Rate of Change indicator (VROC) measures the rate of change in volume over the past "n" sessions. In other words, the VROC measures the current volume by comparing it to the volume "n" periods or sessions ago.
VROC can be a powerful technical indicator. When the rate of change is high, you can then compare price to any technical support or resistance levels or use any other price based technical indicators as well.
In such circumstances, the Volume Rate of Change indicator can tell you ahead of time whether the support or resistance levels can be breached and can confirm trends as well.
The Volume Rate of Change indicator can be used in a number of ways. There are quite a few trading strategies that also employ the information from the VROC indicator.
Using the Volume Rate of Change to spot fake market moves
Most commonly, the Volume Rate of Change indicator can be used to determine fake breakouts in the market. When markets are trading at a new high, volume is typically stronger. This validates the high and new interest in the security pours in pushing volume higher.
However, when volume fails to validate a new high, you can expect to see a correction in the price.
