{"id":3617,"date":"2018-04-01T15:51:53","date_gmt":"2018-04-01T15:51:53","guid":{"rendered":"http:\/\/joapen.com\/blog\/?p=3617"},"modified":"2018-04-01T16:00:11","modified_gmt":"2018-04-01T16:00:11","slug":"volume-price-confirmation-indicator-vpci","status":"publish","type":"post","link":"https:\/\/joapen.com\/blog\/2018\/04\/01\/volume-price-confirmation-indicator-vpci\/","title":{"rendered":"Volume Price Confirmation Indicator (VPCI)"},"content":{"rendered":"<p>I have been looking for volume indicators that help me to identify the right minimum volumes to place long position, but by the moment I was not success.<\/p>\n<p>This time I found this VPCI in <a href=\"https:\/\/www.tradingview.com\">tradingview<\/a>, so let&#8217;s see how it works. The notes are very interesting basis of knowledge.<\/p>\n<h1>Volume Price Confirmation Indicator (VPCI)<\/h1>\n<p>Developed by Buff Dormeier, VPCI won 2007 Charles H Dow award by the MTA. VPCI plots the relationship between price trend and the\u00a0<a href=\"https:\/\/www.tradingview.com\/scripts\/volume\/\"><span class=\"tv-chart-view__tag-page-link\">volume<\/span><\/a>\u00a0, as either being in a state of confirmation or contradiction.<\/p>\n<p>Fundamentally, the VPCI reveals the proportional imbalances between price trends and volume-adjusted price trends.<\/p>\n<ul>\n<li><span style=\"text-decoration: underline;\">An uptrend with increasing volume<\/span> is a market characterized by greed supported by the fuel needed to grow.<\/li>\n<li><span style=\"text-decoration: underline;\">An uptrend without volume<\/span> is complacent and reveals greed deprived of the fuel needed to sustain itself.<\/li>\n<\/ul>\n<p>Investors without the influx of other investors ( volume ) will eventually lose interest and the uptrend should eventually breakdown.<\/p>\n<p>A falling price trend reveals a market driven by fear.<\/p>\n<ul>\n<li><span style=\"text-decoration: underline;\">A falling price trend without volume<\/span> reveals apathy, fear without increasing energy. Unlike greed, fear is self-sustaining, and may endure for long time periods without<br \/>\nincreasing fuel or energy. Adding energy to fear can be likened to adding fuel to a fire and is generally bearish until the VPCI reverses. In such cases, weak-minded investor&#8217;s, overcome by fear, are becoming irrationally fearful until the selling climax reaches a state of maximum homogeneity. At this point, ownership held by weak investor\u2019s has been purged, producing a type of heat death capitulation. These occurrences may be visualized by the VPCI falling below the lower standard deviation of a Bollinger Band of the VPCI, and then rising above the<br \/>\nlower band, and forming a &#8216;V&#8217; bottom.<\/li>\n<\/ul>\n<h1>The code<\/h1>\n<p>\/\/<br \/>\n\/\/ @author <a href=\"https:\/\/www.tradingview.com\/u\/LazyBear\/\">LazyBear<\/a><br \/>\n\/\/<br \/>\n\/\/ If you use this code in its orignal\/modified form, do drop me a note.<br \/>\n\/\/<br \/>\nstudy(&#8220;Volume Price Confirmation Indicator [LazyBear]&#8221;, shorttitle=&#8221;VPCI_LB&#8221;)<br \/>\nshortTerm=input(5)<br \/>\nlongTerm=input(20)<\/p>\n<p>src=close<br \/>\nvpc = vwma(src, longTerm) &#8211; sma(src, longTerm)<br \/>\nvpr = vwma(src, shortTerm)\/sma(src, shortTerm)<br \/>\nvm = sma(volume, shortTerm)\/sma(volume, longTerm)<\/p>\n<p>vpci = vpc*vpr*vm<br \/>\nhline(0)<br \/>\nplot(vpci, color=orange, linewidth=2)<\/p>\n<p>DrawMA = input(true, type=bool, title=&#8221;Draw MA on VPCI?&#8221;)<br \/>\nlengthMA=input(8, &#8220;VPCI MA Length&#8221;)<br \/>\ns=sma(vpci, lengthMA)<br \/>\nplot(DrawMA?s:na, color=teal)<\/p>\n<p>\/\/ Uncomment this line to enable histogram<br \/>\n\/\/ plot(DrawMA?(vpci-s):na, color=blue, style=histogram)<\/p>\n<p>DrawBands = input(false, type=bool)<br \/>\nHighlightBreaches = input(true, type=bool)<br \/>\nlength=input(20, title=&#8221;BB Length&#8221;)<br \/>\nmult=input(2.5)<br \/>\nbb_s = vpci<br \/>\nbasis = sma(bb_s, length)<br \/>\ndev = (mult * stdev(bb_s, length))<br \/>\nupper = (basis + dev)<br \/>\nlower = (basis &#8211; dev)<\/p>\n<p>plot(DrawBands?basis:na, color=gray, style=line)<br \/>\np1 = plot(DrawBands?upper:na, color=gray)<br \/>\np2 = plot(DrawBands?lower:na , color=gray)<br \/>\nfill(p1, p2, blue)<\/p>\n<p>b_color = (bb_s &gt; upper) ? red : (bb_s &lt; lower) ? green : na<br \/>\noffs_v = 0.3<br \/>\nbreach_pos = (bb_s &gt;= upper) ? (bb_s+offs_v) : (bb_s &lt;= lower ? (bb_s &#8211; offs_v) : 0)<br \/>\nBreached=(bb_s &gt;= upper) or (bb_s &lt;= lower)<br \/>\nplot(HighlightBreaches and Breached ? breach_pos : na, style=cross, color=b_color,linewidth=3)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>I have been looking for volume indicators that help me to identify the right minimum volumes to place long position, but by the moment I was not success. This time I found this VPCI in tradingview, so let&#8217;s see how it works. The notes are very interesting basis of knowledge. Volume Price Confirmation Indicator (VPCI) &#8230; <a title=\"Volume Price Confirmation Indicator (VPCI)\" class=\"read-more\" href=\"https:\/\/joapen.com\/blog\/2018\/04\/01\/volume-price-confirmation-indicator-vpci\/\" aria-label=\"Read more about Volume Price Confirmation Indicator (VPCI)\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[105],"tags":[],"class_list":["post-3617","post","type-post","status-publish","format-standard","hentry","category-trading"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Volume Price Confirmation Indicator (VPCI) -<\/title>\n<meta name=\"description\" content=\"I have been looking for volume indicators that help me to identify the right minimum volumes to place long position, but by the moment I was not success. - joapen projects\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/joapen.com\/blog\/2018\/04\/01\/volume-price-confirmation-indicator-vpci\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Volume Price Confirmation Indicator (VPCI) -\" \/>\n<meta property=\"og:description\" content=\"I have been looking for volume indicators that help me to identify the right minimum volumes to place long position, but by the moment I was not success. - joapen projects\" \/>\n<meta property=\"og:url\" content=\"https:\/\/joapen.com\/blog\/2018\/04\/01\/volume-price-confirmation-indicator-vpci\/\" \/>\n<meta property=\"og:site_name\" content=\"joapen projects\" \/>\n<meta property=\"article:published_time\" content=\"2018-04-01T15:51:53+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-04-01T16:00:11+00:00\" \/>\n<meta name=\"author\" content=\"joapen\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"joapen\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/joapen.com\\\/blog\\\/2018\\\/04\\\/01\\\/volume-price-confirmation-indicator-vpci\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/joapen.com\\\/blog\\\/2018\\\/04\\\/01\\\/volume-price-confirmation-indicator-vpci\\\/\"},\"author\":{\"name\":\"joapen\",\"@id\":\"https:\\\/\\\/joapen.com\\\/blog\\\/#\\\/schema\\\/person\\\/23919df2312175fe9c4609203595b217\"},\"headline\":\"Volume Price Confirmation Indicator (VPCI)\",\"datePublished\":\"2018-04-01T15:51:53+00:00\",\"dateModified\":\"2018-04-01T16:00:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/joapen.com\\\/blog\\\/2018\\\/04\\\/01\\\/volume-price-confirmation-indicator-vpci\\\/\"},\"wordCount\":522,\"commentCount\":2,\"publisher\":{\"@id\":\"https:\\\/\\\/joapen.com\\\/blog\\\/#\\\/schema\\\/person\\\/23919df2312175fe9c4609203595b217\"},\"articleSection\":[\"Trading\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/joapen.com\\\/blog\\\/2018\\\/04\\\/01\\\/volume-price-confirmation-indicator-vpci\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/joapen.com\\\/blog\\\/2018\\\/04\\\/01\\\/volume-price-confirmation-indicator-vpci\\\/\",\"url\":\"https:\\\/\\\/joapen.com\\\/blog\\\/2018\\\/04\\\/01\\\/volume-price-confirmation-indicator-vpci\\\/\",\"name\":\"Volume Price Confirmation Indicator (VPCI) -\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/joapen.com\\\/blog\\\/#website\"},\"datePublished\":\"2018-04-01T15:51:53+00:00\",\"dateModified\":\"2018-04-01T16:00:11+00:00\",\"description\":\"I have been looking for volume indicators that help me to identify the right minimum volumes to place long position, but by the moment I was not success. - joapen projects\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/joapen.com\\\/blog\\\/2018\\\/04\\\/01\\\/volume-price-confirmation-indicator-vpci\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/joapen.com\\\/blog\\\/2018\\\/04\\\/01\\\/volume-price-confirmation-indicator-vpci\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/joapen.com\\\/blog\\\/2018\\\/04\\\/01\\\/volume-price-confirmation-indicator-vpci\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/joapen.com\\\/blog\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Volume Price Confirmation Indicator (VPCI)\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/joapen.com\\\/blog\\\/#website\",\"url\":\"https:\\\/\\\/joapen.com\\\/blog\\\/\",\"name\":\"joapen projects\",\"description\":\"Just a place to write\",\"publisher\":{\"@id\":\"https:\\\/\\\/joapen.com\\\/blog\\\/#\\\/schema\\\/person\\\/23919df2312175fe9c4609203595b217\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/joapen.com\\\/blog\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":[\"Person\",\"Organization\"],\"@id\":\"https:\\\/\\\/joapen.com\\\/blog\\\/#\\\/schema\\\/person\\\/23919df2312175fe9c4609203595b217\",\"name\":\"joapen\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/joapen.com\\\/blog\\\/wp-content\\\/uploads\\\/2021\\\/04\\\/joapen-mini.jpeg\",\"url\":\"https:\\\/\\\/joapen.com\\\/blog\\\/wp-content\\\/uploads\\\/2021\\\/04\\\/joapen-mini.jpeg\",\"contentUrl\":\"https:\\\/\\\/joapen.com\\\/blog\\\/wp-content\\\/uploads\\\/2021\\\/04\\\/joapen-mini.jpeg\",\"width\":400,\"height\":400,\"caption\":\"joapen\"},\"logo\":{\"@id\":\"https:\\\/\\\/joapen.com\\\/blog\\\/wp-content\\\/uploads\\\/2021\\\/04\\\/joapen-mini.jpeg\"},\"sameAs\":[\"http:\\\/\\\/www.joapen.com\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Volume Price Confirmation Indicator (VPCI) -","description":"I have been looking for volume indicators that help me to identify the right minimum volumes to place long position, but by the moment I was not success. - joapen projects","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/joapen.com\/blog\/2018\/04\/01\/volume-price-confirmation-indicator-vpci\/","og_locale":"en_US","og_type":"article","og_title":"Volume Price Confirmation Indicator (VPCI) -","og_description":"I have been looking for volume indicators that help me to identify the right minimum volumes to place long position, but by the moment I was not success. - joapen projects","og_url":"https:\/\/joapen.com\/blog\/2018\/04\/01\/volume-price-confirmation-indicator-vpci\/","og_site_name":"joapen projects","article_published_time":"2018-04-01T15:51:53+00:00","article_modified_time":"2018-04-01T16:00:11+00:00","author":"joapen","twitter_misc":{"Written by":"joapen","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/joapen.com\/blog\/2018\/04\/01\/volume-price-confirmation-indicator-vpci\/#article","isPartOf":{"@id":"https:\/\/joapen.com\/blog\/2018\/04\/01\/volume-price-confirmation-indicator-vpci\/"},"author":{"name":"joapen","@id":"https:\/\/joapen.com\/blog\/#\/schema\/person\/23919df2312175fe9c4609203595b217"},"headline":"Volume Price Confirmation Indicator (VPCI)","datePublished":"2018-04-01T15:51:53+00:00","dateModified":"2018-04-01T16:00:11+00:00","mainEntityOfPage":{"@id":"https:\/\/joapen.com\/blog\/2018\/04\/01\/volume-price-confirmation-indicator-vpci\/"},"wordCount":522,"commentCount":2,"publisher":{"@id":"https:\/\/joapen.com\/blog\/#\/schema\/person\/23919df2312175fe9c4609203595b217"},"articleSection":["Trading"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/joapen.com\/blog\/2018\/04\/01\/volume-price-confirmation-indicator-vpci\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/joapen.com\/blog\/2018\/04\/01\/volume-price-confirmation-indicator-vpci\/","url":"https:\/\/joapen.com\/blog\/2018\/04\/01\/volume-price-confirmation-indicator-vpci\/","name":"Volume Price Confirmation Indicator (VPCI) -","isPartOf":{"@id":"https:\/\/joapen.com\/blog\/#website"},"datePublished":"2018-04-01T15:51:53+00:00","dateModified":"2018-04-01T16:00:11+00:00","description":"I have been looking for volume indicators that help me to identify the right minimum volumes to place long position, but by the moment I was not success. - joapen projects","breadcrumb":{"@id":"https:\/\/joapen.com\/blog\/2018\/04\/01\/volume-price-confirmation-indicator-vpci\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/joapen.com\/blog\/2018\/04\/01\/volume-price-confirmation-indicator-vpci\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/joapen.com\/blog\/2018\/04\/01\/volume-price-confirmation-indicator-vpci\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/joapen.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Volume Price Confirmation Indicator (VPCI)"}]},{"@type":"WebSite","@id":"https:\/\/joapen.com\/blog\/#website","url":"https:\/\/joapen.com\/blog\/","name":"joapen projects","description":"Just a place to write","publisher":{"@id":"https:\/\/joapen.com\/blog\/#\/schema\/person\/23919df2312175fe9c4609203595b217"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/joapen.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":["Person","Organization"],"@id":"https:\/\/joapen.com\/blog\/#\/schema\/person\/23919df2312175fe9c4609203595b217","name":"joapen","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/joapen.com\/blog\/wp-content\/uploads\/2021\/04\/joapen-mini.jpeg","url":"https:\/\/joapen.com\/blog\/wp-content\/uploads\/2021\/04\/joapen-mini.jpeg","contentUrl":"https:\/\/joapen.com\/blog\/wp-content\/uploads\/2021\/04\/joapen-mini.jpeg","width":400,"height":400,"caption":"joapen"},"logo":{"@id":"https:\/\/joapen.com\/blog\/wp-content\/uploads\/2021\/04\/joapen-mini.jpeg"},"sameAs":["http:\/\/www.joapen.com"]}]}},"_links":{"self":[{"href":"https:\/\/joapen.com\/blog\/wp-json\/wp\/v2\/posts\/3617","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/joapen.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/joapen.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/joapen.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/joapen.com\/blog\/wp-json\/wp\/v2\/comments?post=3617"}],"version-history":[{"count":3,"href":"https:\/\/joapen.com\/blog\/wp-json\/wp\/v2\/posts\/3617\/revisions"}],"predecessor-version":[{"id":3620,"href":"https:\/\/joapen.com\/blog\/wp-json\/wp\/v2\/posts\/3617\/revisions\/3620"}],"wp:attachment":[{"href":"https:\/\/joapen.com\/blog\/wp-json\/wp\/v2\/media?parent=3617"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/joapen.com\/blog\/wp-json\/wp\/v2\/categories?post=3617"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/joapen.com\/blog\/wp-json\/wp\/v2\/tags?post=3617"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}