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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  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 are some of the most common technical indicators that back up Doji patterns?

    The doji candlestick is important enough that Steve Nison devotes an entire chapter to it in his definitive work on candlestick ... Read Full Answer >>
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    The exhausted selling model is a pricing strategy used to identify and trade based off of the price floor of a security. ... Read Full Answer >>

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