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.

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RELATED FAQS
  1. What is the Volume Price Trend Indicator (VPT) formula and how is it calculated?

    Understand the significance and usefulness of the volume price trend indicator and learn the formula for calculating the ... Read Answer >>
  2. Why is the Volume Price Trend Indicator (VPT) important for traders and analysts?

    Learn about the volume price trend (VPT) indicator and why it is considered an important technical indicator by traders and ... Read Answer >>
  3. Why is the Uptick Volume important for traders and analysts?

    Find out why technical analysts and traders keep track of uptick volume to better assess the momentum of a stock's price ... Read Answer >>
  4. What is the Cumulative Volume Index (CVI) formula and how is it calculated?

    Discover how to calculate the cumulative volume index, a technical momentum indicator used by traders and analysts to gauge ... Read Answer >>
  5. Why is the Ease Of Movement Indicator important for traders and analysts?

    Read more about the ease of movement indicator, a technical momentum oscillator created by Richard Arms to track price changes ... Read Answer >>
  6. Why is trading volume important to investors?

    Learn about trading volume, its importance and how investors analyze volume to confirm a trend or reversal in a security. Read Answer >>
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