Edwin Joseph Cohn: Difference between revisions
en>Alan Liefting m rm File:Replace this image male.svg per discussion, typos fixed: well-known → well known using AWB |
en>Waacstats Add persondata short description using AWB |
||
| Line 1: | Line 1: | ||
'''Volume–price trend''' (VPT) (sometimes '''price–volume trend''') is a [[technical analysis]] indicator intended to relate price and volume in the [[stock market]]. VPT is based on a running cumulative volume that adds or subtracts a multiple of the percentage change in share price trend and current volume, depending upon their upward or downward movements.<ref>[http://www.investopedia.com/terms/v/vptindicator.asp Volume Price Trend Indicator – VPT]</ref> | |||
==Formula== | |||
: <math>\text{VPT} = \text{VPT}_\text{prev} + \text{volume} \times { \text{close}_\text{today} - \text{close}_\text{prev} \over \text{close}_\text{prev} }</math> | |||
VPT total, i.e. the zero point, is arbitrary. Only the shape of the resulting indicator is used, not the actual level of the total. | |||
VPT is similar to [[on-balance volume]] (OBV),<ref>[http://www.gannalyst.com/Gannalyst_Professional/Gannalyst_Indicators_Price_Volume_Trend.shtml Price/Volume Trend]</ref> but where OBV takes volume just according to whether the close was higher or lower, VPT includes how much higher or lower it was. | |||
VPT is interpreted in similar ways to OBV. Generally, the idea is that volume is higher on days with a price move in the dominant direction, for example in a strong uptrend more volume on up days than down days. So, when prices are going up, VPT should be going up too, and when prices make a new rally high, VPT should too. If VPT fails to go past its previous rally high then this is a negative divergence, suggesting a weak move. | |||
==Similar indicators== | |||
Other price × volume indicators: | |||
* [[Money Flow Index]] | |||
* [[On-balance volume]] | |||
* [[Accumulation/distribution index]] | |||
==References== | |||
{{Reflist}} | |||
==External links== | |||
*[https://www.psg-online.co.za/Documentation/Webdocs/Education/STEP3_Tutorial.ppt STEP3_Tutorial] | |||
*[http://www.sbf.unisg.ch/org/sbf/web.nsf/SysWebRessources/AmmannRekatevonWyss04/$FILE/TechAnalysis.pdf OUTPERFORMANCE WITH TECHNICAL ANALYSIS? — AN INTRADAY STUDY ON THE SWISS STOCK MARKET] | |||
{{technical analysis}} | |||
{{DEFAULTSORT:Volume-price trend}} | |||
[[Category:Technical indicators]] | |||
Revision as of 22:18, 25 October 2013
Volume–price trend (VPT) (sometimes price–volume trend) is a technical analysis indicator intended to relate price and volume in the stock market. VPT is based on a running cumulative volume that adds or subtracts a multiple of the percentage change in share price trend and current volume, depending upon their upward or downward movements.[1]
Formula
VPT total, i.e. the zero point, is arbitrary. Only the shape of the resulting indicator is used, not the actual level of the total.
VPT is similar to on-balance volume (OBV),[2] but where OBV takes volume just according to whether the close was higher or lower, VPT includes how much higher or lower it was.
VPT is interpreted in similar ways to OBV. Generally, the idea is that volume is higher on days with a price move in the dominant direction, for example in a strong uptrend more volume on up days than down days. So, when prices are going up, VPT should be going up too, and when prices make a new rally high, VPT should too. If VPT fails to go past its previous rally high then this is a negative divergence, suggesting a weak move.
Similar indicators
Other price × volume indicators:
References
43 year old Petroleum Engineer Harry from Deep River, usually spends time with hobbies and interests like renting movies, property developers in singapore new condominium and vehicle racing. Constantly enjoys going to destinations like Camino Real de Tierra Adentro.