Volume Price Trend (VPT)

Volume Price Trend (VPT) consists of a cumulative volume line that adds or subtracts a multiple of the percentage change in share price trend and current volume, depending upon their upward or downward movements.

Volume Price Trend (VPT)

Volume Price Trend (VPT) is a technical analysis indicator consisting of a cumulative volume line that adds or subtracts a multiple of the percentage change in share price trend and current volume, depending upon their upward or downward movements.

 


Volume Price Trend Formula

Volume Price Trend is similar to On-Balance Volume (OBV).  But where OBV takes volume just according to whether the close was higher or lower, VPT includes how much higher or lower it was.

Interpretation of Volume Price Trend

The Volume Price Trend indicator is used to determine the balance between a stock's demand and supply. The percentage change in the share price trend denotes the relative supply or demand of a particular security, while volume indicates the actual size of the forces.


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