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.