# 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.