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. 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 >>
  2. What are the best technical indicators that complement the Volume Price Trend Indicator ...

    Explore the uses of the volume price trend indicator (VPT) and learn the best technical indicators to use in conjunction ... Read Answer >>
  3. 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 >>
  4. Why is the Cumulative Volume Index (CVI) useful for traders?

    Learn why the cumulative volume index can be a useful market breadth indicator for traders, and how its movements can be ... Read Answer >>
  5. How can I calculate a company's forward p/e in Excel?

    Discover why trading volume is higher when the price of a security changes. Supply and demand is the mechanism through which ... Read Answer >>
  6. Why is the Time Segmented Volume (TSV) important for traders and analysts?

    Find out why the Time Segmented Volume (TSV) indicator is considered unique among other types of volume oscillators used ... Read Answer >>
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