GlossaryAdvanced
Volume Price Trend (VPT)
A cumulative indicator similar to OBV, but weighting each period's volume by the percentage price change rather than adding or subtracting it in full.
Volume Price Trend (VPT) is a cumulative, running indicator conceptually similar to OBV, but instead of adding or subtracting a period's full volume based only on price direction, it weights that volume by the actual percentage price change for the period before adding it to the running total.
This makes VPT more sensitive to the magnitude of a price move than OBV, which treats a 0.1% up day and a 10% up day identically as long as both closed higher. See Kaavon's dedicated VPT article for the full calculation.
Examples
- Unlike OBV, VPT gives a larger price move more weight in its running total than a smaller one, even if both moved in the same direction.
- VPT and OBV are both cumulative volume-based indicators, differing mainly in how precisely each weights a given period's volume.