The volume price trend indicator is used to determine the balance between a security’s demand and supply. The percentage change in the share price trend shows the relative supply or demand of a particular security, while volume indicates the force behind the trend. The VPT indicator is similar to the on-balance volume (OBV) indicator in that it measures cumulative volume and provides traders with information about a security’s money flow.
This is Volume Price Trend or VPT recalculated to be an Oscillator, a Divergence hunter was added, also Pivot Points and Alerts.
VPT is considered a "leading indicator" - in contrast to a "lagging indicator" just as Moving Averages it does not show a confirmation what already happened, but it shows what can happen in the future. For example: The chart is climbing while the VPT oscillator is slowly declining, gets weaker and weaker, maybe even prints bearish divergences? That means that a reversal might be occurring soon. Leading indicators are best paired with Stop and Resistance Lines, general Trendlines , Fib Retracements etc...Your chart is approaching a very important Resistance Trendline but the VPT shows a very positive signal? That means there is a high probability that the Resistance is going to be pushed though and becomes Support in the future.
What are those circles? -These are Divergences. Red for Regular-Bearish. Orange for Hidden-Bearish. Green for Regular-Bullish. Aqua for Hidden-Bullish.
What are those triangles? - These are Pivots . They show when the VPT oscillator might reverse, this is important to know because many times the price action follows this move.
Please keep in mind that this indicator is a tool and not a strategy, do not blindly trade signals, do your own research first! Use this indicator in conjunction with other indicators to get multiple confirmations.
This indicator is the ultimate answer to my hidden volume changes. It works just amazing.. Thank you for your time and generosity!
vtbolat
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Excellent study, volume is the key factor on price movement, and it is very clever way to use it to make indicator showing divergences. Thanks a lot for this effort.
Flyte-X
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Excellent work - many thanks!
djfabrizia
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Hello, I love your indicator, however, I found some problems so I thought I might let you know. -Is the indicator supposed to repaint or not? if not I saw it repainting under my own eyes some time ago - today my 1 hr bearish divergence alert was fired several hours late I wonder if I can share the chart with you to double-check?
QFSCrypto
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When I set alerts for Bear Diversion functions Pivot High, Pivot Low, VPT Crossed Down, VPT Crossed Up
The alerts do not occur at the time of the crossover, but usually there is a delay after 2-3 candles close For example, the time of the intersection is 11am on the 1h frame, but the warning appears at 12:30 (ie 1.5 hours behind, equivalent to 1.5 candles).
Can you help me fix this warning?
The_Bear1
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solid indicator! underrated for sure.
CryptoGoth95
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Way too underrated, could be an editor's pick to help at reading volume... Thank you for your generosity, much appreciated.
DeadGauss
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Love the idea! Huge thumbs up.
mjahre
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One of the best divergence indicators on Tradingview!
krishina
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I didn't understand the difference between regular autistic and hidden bullish