Thanks for the comment, Sanjay. I just view VBM as a variation on the rate of change (ROC) technical indicator. Like any technical indicator, VBM should be used in conjunction with other aspects of technical analysis and an overall strategy which suits you as a trader/investor.

While ROC’s unit is percentages, VBM provides a more “apples to apples” comparison between different stocks, since the units are normalized by volatility.

I don’t have a specific strategy to recommend, but VBM could be taken under consideration for any strategy which is based upon momentum and/or ROC. Along these lines, as food for thought, there’s a good article about using a “risk adjusted momentum” strategy. In this article, the author suggests using a standard deviation of price movements as a denominator to normalize momentum. This is very similar to VBM which uses ATR instead of standard deviations.