Input Information
| Name | Expression | Default | Description |
Market Synopsis
Table of Content:
Introduction
Definition of Price and Volume Trend (Pvt) Indicator
Understanding the Price and Volume Trend (Pvt) Indicator
- How the indicator works
- Interpreting the data
- Advantages and disadvantages
Using the Price and Volume Trend (Pvt) Indicator in Trading
- Identifying trends with the indicator
- Entry and exit points with the indicator
- Combining with other indicators for better accuracy
Conclusion
Summary of the benefits and drawbacks of using the Price and Volume Trend (Pvt) Indicator in trading.
Table of Contents
- Introduction
- Definition of the Volume Price Trend (VPT) Trading Indicator
- Uses of the Volume Price Trend (VPT) Trading Indicator
- Calculation of the Volume Price Trend (VPT) Trading Indicator
- Interpretation of the Volume Price Trend (VPT) Trading Indicator
- Conclusion
Introduction
The Volume Price Trend (VPT) is a momentum indicator that measures the relationship between volume and price change. It was developed by David S. Nassar in the 1980s as an improvement to the On-Balance Volume (OBV) indicator. The VPT indicator is used to identify trends, confirm signals, and provide trade alerts.
Definition of the Volume Price Trend (VPT) Trading Indicator
The Volume Price Trend (VPT) indicator is a technical analysis tool that measures the correlation between price and volume. It does this by adding or subtracting the percentage change in volume multiplied by the percentage change in price for each period. The result is then added to or subtracted from a running total. This value is plotted on a chart to create the VPT line.
Uses of the Volume Price Trend (VPT) Trading Indicator
- To identify trends: The VPT indicator can be used to identify trends in the market. If the VPT line is moving up, it indicates that buying pressure is increasing, and if it is moving down, it indicates selling pressure is increasing.
- To confirm signals: The VPT indicator can be used to confirm buy or sell signals generated by other indicators. For example, if the VPT line is rising along with the price of a stock, it can confirm a bullish trend or signal.
- To provide trade alerts: The VPT indicator can be used to provide alerts when there is a divergence between the VPT line and the price of a security. This could indicate a potential reversal in the trend.
Calculation of the Volume Price Trend (VPT) Trading Indicator
The formula for calculating the VPT indicator is as follows:
-
- Choose the initial period for calculating the VPT indicator.
- Calculate the percentage change in price for each period:
(Current Price – Previous Price) / Previous Price * 100
-
- Calculate the percentage change in volume for each period:
(Current Volume – Previous Volume) / Previous Volume * 100
-
- Multiply the percentage change in price by the percentage change in volume for each period:
Price Change Percentage * Volume Change Percentage
-
- Add or subtract the result from a running total:
Running Total +/- (Price Change Percentage * Volume Change Percentage)
Interpretation of the Volume Price Trend (VPT) Trading Indicator
When interpreting the VPT indicator, traders look for divergences between the VPT line and the price of a security. If the VPT line is rising while the price is falling, it could indicate that selling pressure is decreasing and buying pressure is increasing. This divergence could be a signal of a potential reversal in the trend.
Conclusion
The Volume Price Trend (VPT) Trading Indicator is a useful tool for technical analysts and traders to identify trends, confirm signals, and provide trade alerts. By measuring the correlation between volume and price change, it helps traders to make informed decisions about buying and selling securities.
Plot Information
| Number | Name | Default Color | Description |
Indicators
- Accumulation Swing Index ASI
- Accumulation/Distribution AD
- Adaptive moving average
- Alligator (Gator_2)
- Alligator (Gator)
- Aroon Down Indicator
- Aroon Oscillator
- Aroon Up Indicator
- Average Directional Movement Index ADX
- Average True Range- ATR
- Awesome Oscillator
- Bears Power
- Bollinger Bands-BB
- Bubi Candles
- Bulls Power
- BW-ZoneTrade-BWZT
- Chaikin Oscillator
- Chaikin Volatility-CHV
- ColorBars
- ColorLine
- Commodities Channel Index- CCI
- Crossover of Moving Averages
- Demarker Indicator
- Detrended Price Oscillator-DPO
- Directional Indicators-DI
- Directional Movement Index-DMI
- Disparity Index
- Double exponential moving average
- Double Exponential Moving Average DEMA
- Dynamic Support and Resistance
- Envelopes
- Exponential Moving Average-EMA
- Force Index
- Fractal Adaptive Moving Average-FrAMA
- Fractals
- Heikin Ashi
- Ichimoku Kinko Hyo (ichimoku)
- Keltner channel
- Market Facilitation Index
- Mass Index indicator (MI)
- McClellan Oscillator
- Momentum
- Money Flow Index MFI
- Moving Average
- Moving Average Convergence/ Divergence MACD MAC D
- Moving Average MV
- Moving Average of Oscillator
- On Balance Volume OBV
- Oscillator of a Moving Average OsMA ( MACD Histogram)
- Parabolic
- Parabolic SAR
- Price and Volume Trend (VPT) Indicator
- Price Channel Indicator
- Range Indicator
- Rate of Change ROC
- Relative Strength Index RSI
- Relative Vigor Index RVI
- Simple Moving Average SMA
- Smoothed Moving Average SMMA Custom Moving Average
- Standard Deviation (StdDev)
- Stochastic Oscillator
- The triple exponential average TRIX indicator
- Triple Exponential Average
- Triple Exponential Moving Average TEMA
- Triple Moving Average Crossover
- True Strength Index TSI
- Ultimate Oscillator
- Variable index Dynamic Average (VIDYA)
- Volume Rate of Change VROC
- Weighted Moving Average WMA
- Williams’ Percent Range-Williams %R Larry Williams Percentage Range (WPR)
Fundamental Summary
- Coming soon!!
Technical Summary
Related Content
course
course