What is the Volume Rate of Change Indicator for MT4?
The Volume Rate of Change indicator (aka VROC) on MetaTrader 4 is a commonly-used technical analysis indicator that illustrates the rate at which the price of a given currency or security is changing over time. The indicator displays two values: the current value of the underlying asset and its previous value. The first value is represented by a vertical line, while a horizontal line represents the second value. The closer the two lines are to each other, the faster the price change.
The Volume Rate of Change indicator can help identify trends in a currency’s price and indicate its volatility or stability. It can also help determine potential entry and exit points for trades.
How to use the Volume Rate of Change Indicator for MT4?
The VROC is calculated by taking the difference between two consecutive closing prices and then dividing it by the former value. For example, if the USD/EUR exchange rate rose from 1.1250 to 1.1260, its VROC value would be 0.0012 (1.1250 – 1.1260). The higher the VROC value, the faster the USD/EUR exchange rate rises or falls.
The VROC can be used as an early warning signal for possible price reversals or rapid changes in currency values. However, it should be used as something other than a standalone indicator and combined with other hands to get a complete picture of a currency’s value trends.
Volume Rate of Change Indicator MT4 trading settings
The VRCI is composed of two lines on a chart. The upper line represents the current price of an asset, and the lower line represents its historical price data. The difference between these two lines indicates how volatile or stable the asset’s price has been over a given period. A positive difference indicates that the asset’s price has increased, while a negative difference indicates that the asset’s price has decreased over that period.
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Volume Rate of Change Indicator Advantages
Advantages: The Volume Rate of Change Indicator helps identify changes in the market and indicate future direction. It can determine whether traders strongly support or oppose a particular currency and help detect potential price reversals. Additionally, it can help identify potentially profitable trading opportunities and provide traders with an early warning system before significant price shifts occur.
Volume Rate of Change Indicator Disadvantages
Disadvantages of using this indicator include the possibility that it may only be suitable for some trading situations, as some traders may find it too complex or subjective for their needs. Additionally, some traders may find that the VTCI’s value can change significantly over short periods, making it difficult to use for long-term trades. Overall, the VTCI is helpful for those interested in learning more about forex trading and analyzing market movements.
VROC Indicator installation on MT4
Volume Rate of Change (VROC) is a technical indicator that measures the percentage change in trading volume over a given period. Here are the steps to install the VROC Indicator on MT4:
- Download the VROC Indicator file (usually a .mq4 or .ex4 file) from a reputable source.
- Open your MT4 platform and go to “File” > “Open Data Folder.”
- Go to the “MQL4” folder and then to the “Indicators” folder in the data folder.
- Copy the VROC Indicator file to the “Indicators” folder.
- Close and restart the MT4 platform.
- On the left-hand side of the MT4 platform, find the “Navigator” window and expand the “Indicators” section.
- Look for the VROC Indicator and drag it onto the chart you want to use it.
- Adjust the settings of the VROC Indicator to your preferences (e.g., period, color, line thickness, etc.).
- Click “OK” to apply the changes and use the VROC Indicator.
Just so you know, installing third-party tools on your trading platform can have security risks. Only download the VROC Indicator from a reputable source and use antivirus software to scan the downloaded file before installation. Additionally, always be cautious of pop-up alerts asking permission to download or install anything on your computer or trading platform.
In this article, we’ve looked at the Volume Rate of Change (VROC) indicator and explained how to install it on your trading platform. VROC is a valuable tool for traders interested in understanding market movements more closely.