Wealth-Lab Wiki

API ChartStyles Community Components Community Indicators IndexDefinitions Knowledge Base Misc Optimizers Pending Deletion PosSizers Providers Standard Indicators TASC Traders Tips TASCIndicators Tutorial Videos Visualizers
RSS

Navigation


Quick Search
»
Advanced Search »


VPT (Volume Price Trend)

RSS

Volume Price Trend (VPT): Indicator Documentation

Syntax

DataSeries VPT( Bars );

Parameter Description

Bars  Bars object to be used in the indicator's calculation

Description

The Price/Volume Trend Index ( PVT ) is a cumulative momentum style indicator which which ties together Volume with price action. The difference is that the amount of Volume added to the total is dependent upon the relationship of Today's close to Yesterdays close.

According to IncredibleCharts, the formula is:

[((Today's Close - Yesterdays Close) / Yesterdays Close) x Volume] + Yesterdays PVT

The PVT can be considered to be more accurate than the OBV index in that the amount of volume apportioned each day is directly proportional to the underlying price action. So then, Large Moves account for large moves in the Index and small moves will account for small moves in the Index. This way the PVT can be seen to almost mirror the underlying market action, however as shown above, divergence can occur, and it is this divergence that is an indicator of possible future price action.

Example

This example illustrates how to plot the VPT:


using System;
using System.Collections.Generic;
using System.Text;
using System.Drawing;
using WealthLab;
using WealthLab.Indicators;
using Community.Indicators;

namespace WealthLab.Strategies { public class MyStrategy : WealthScript { protected override void Execute() { ChartPane vptPane = CreatePane( 20, false, true ); VPT vpt = VPT.Series( Bars ); PlotSeries( vptPane, vpt, Color.Blue, WealthLab.LineStyle.Solid, 2 ); } } }

Important Disclaimer: The information provided by Wealth-Lab is strictly for informational purposes and is not to be construed as advice or solicitation to buy or sell any security.  The owner of Wealth-Lab.com assumes no liability resulting from the use of the material contained herein for investment purposes. By using this web site, you agree to the terms of this disclaimer and our Terms of Use.

Used under license from FMR Corp. Copyright 2008 FMR Corp. All rights reserved.


ScrewTurn Wiki. Some of the icons created by FamFamFam.