Volume Price Trend
The Volume Price Trend uses the difference of price and previous price with volume and feedback to arrive at its final form. The user may change only the input (close). This indicator’s definition is further expressed in the condensed code given in the calculation below.
How To Trade Using Volume Price Trend
The Volume Price Trend (VPT) may be used directly with the price plot. If there appears to be a bullish divergence of price and the VPT (upward slope of the VPT and downward slope of the price) a buy opportunity exists. Conversely, a bearish divergence (downward slope of the VPT and upward slope of the price) implies a sell opportunity. The VPT may also be used in conjunction with other indicators. No trading signals are calculated.
How To Access in MotiveWave
Go to the top menu, choose Study>Volume Based>Volume Price Trend
or go to the top menu, choose Add Study, start typing in this study name until you see it appear in the list, click on the study name, click OK.
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//input = price, user defined, default is close
//prev = previous, index = current bar number
prevP = price[index-1]; prevVpt = ifNull(0, vpt[index-1]); //returns 0 on first try Plot: vpt = prevVpt + volume * ((price - prevP) / prevP);