Volume Price Trend Indicator - VPT

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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.

INVESTOPEDIA EXPLAINS '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.

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RELATED FAQS
  1. What is a common strategy traders implement when using the Volume Price Trend Indicator ...

    A trader can use the volume price trend (VPT) indicator to identify buying and selling pressure and momentum of a stock. ... Read Full Answer >>
  2. Why is the Volume Price Trend Indicator (VPT) important for traders and analysts?

    The volume price trend (VPT) indicator is considered to be a valuable trend and momentum indicator by traders and market ... Read Full Answer >>
  3. What are the best technical indicators that complement the Volume Price Trend Indicator ...

    Some of the best technical indicators to complement using the volume price trend (VPT) indicator are moving averages and ... Read Full Answer >>
  4. What is the Volume Price Trend Indicator (VPT) formula and how is it calculated?

    The volume price trend (VPT) indicator adds or subtracts multiples of a percentage change in present stock volume and share ... Read Full Answer >>
  5. What assumptions are made when conducting a t-test?

    The common assumptions made when doing a t-test include those regarding the scale of measurement, random sampling, normality ... Read Full Answer >>
  6. How are double exponential moving averages applied in technical analysis?

    Double exponential moving averages (DEMAS) are commonly used in technical analysis like any other moving average indicator ... Read Full Answer >>
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