The VolumeROC function in ProBuilder language is used to calculate the Rate of Change (ROC) of trading volume over a specified number of periods. This indicator helps to identify the speed at which the trading volume is changing, providing insights into market activity dynamics.

Definition and Purpose:
VolumeROC measures the percentage change in volume over a given number of periods. It is similar to the price ROC but applies to volume instead. This indicator is useful for detecting spikes or drops in volume, which can precede significant price movements.

Syntax:

VolumeROC[N]

Here, N represents the number of periods over which the volume change is calculated.

Example:

The following example demonstrates how to use the VolumeROC function to detect significant changes in volume. If the VolumeROC from the previous period exceeds 50, it flags a high volume change.

i1 = VolumeROC[1]
IF i1 > 50 THEN
    highVolumeROCspotted = 1
ELSE
    highVolumeROCspotted = 0
ENDIF
RETURN highVolumeROCspotted

Additional Information:

The VolumeROC indicator is particularly useful in markets where volume trends can indicate potential price movements. A rising VolumeROC can suggest increasing interest and possibly an upcoming price surge, whereas a falling VolumeROC might indicate declining interest. It is important to consider other factors and indicators in conjunction with VolumeROC for more reliable trading signals.