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The Volume Rate of Change Indicator (VROC) , measures the momentum of the Volume in the market. The Momentum is simply the rate of change over a specific time frame, in this case, the rate of change of the Volume over the period.
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With most markets, the volume can be expected to within a constant range over time. When volume moves outside this range and begins to trend either upwards or downwards, then a capitulation of one sort or another can be expected. Using this breakout from the average, the VROC is best used as a confirmation indicator to other studies. |
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