Volume Price Trend Indicator - VPT

DEFINITION of 'Volume Price Trend Indicator - VPT'

A technical 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.

BREAKING DOWN 'Volume Price Trend Indicator - VPT'

This 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.