Volume Price Trend

The Volume Price Trend (VPT) indicator combines price movement with volume to give a cumulative measure of the trend. It is similar to the On-Balance Volume (OBV) indicator but adds a weighting of the price change relative to the volume. This helps identify the strength of a trend by considering both price and volume together.

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Manufacturer: nt8indicators

SKU: VPT

Vendor: nt8Indicators

$9.90

Qty:

How it works:

When the price closes higher, the VPT is added to the previous VPT value based on the current volume.
When the price closes lower, the VPT is subtracted from the previous VPT value based on the current volume.
It gives more weight to price changes on higher volume, which can signal a more significant trend.

Formula:

$V PT = V P T_{p re v} + (P re v i o u s Cl ose ( Cl ose - P re v i o u s Cl ose )) \times V o l u m e$

Where:

( VPT_{prev} ) is the previous value of the Volume Price Trend.
( Close ) is the current close price.
( Previous Close ) is the previous close price.
( Volume ) is the trading volume for the current bar.

Usage:

Rising VPT: Indicates a strong upward trend with increasing volume.
Falling VPT: Indicates a strong downward trend with increasing volume.

A signal Line may help determining the trend.

Product tags

volume (8)
,
signal (5)
,
trend (9)
,
two lines cross (5)

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$9.90