Volume Price Trend (VPT)

Cumulative volume-weighted price momentum indicator that confirms trend strength by measuring whether volume flows into or out of an asset

Property	Value
Category	Valuation Metrics
Unit	USD
Resolution	1d
Assets	BTC
Tier	Basic
API Endpoint	GET /v1/holder/valuation
Field	vpt

Overview

Volume Price Trend (VPT) is a cumulative volume-based indicator that relates volume to price change. Unlike On-Balance Volume (OBV) which adds or subtracts the entire day's volume, VPT adds or subtracts only a proportion of volume based on the percentage change in price. This makes VPT more sensitive to the magnitude of price movements.

> Volume source: This metric uses spot exchange trading volume in USD (not on-chain transfer volume). This reflects actual market trading activity across centralized exchanges.

Formula

$$\text{VPT}_t = \text{VPT}_{t-1} + \text{Volume}_t \times \frac{\text{Close}_t - \text{Close}_{t-1}}{\text{Close}_{t-1}}$$

Starting from $\text{VPT}_0 = 0$, the indicator accumulates proportional volume over time.

Interpretation

• Rising VPT indicates that volume is flowing into the asset on up days more than it is flowing out on down days, confirming bullish momentum
• Falling VPT indicates net volume outflow, confirming bearish momentum
• Divergence between price making new highs while VPT fails to confirm can signal a potential reversal
• VPT crossing above or below its moving average can generate buy/sell signals

Use Cases

• Trend confirmation: Validate whether a price trend is supported by proportional volume
• Divergence detection: Spot weakening trends when VPT diverges from price action
• Volume flow analysis: Understand whether large volume days are accumulation or distribution
• Comparison with OBV: VPT provides a more nuanced view since it weights volume by price change magnitude

API Usage

curl -H "Authorization: Bearer YOUR_API_KEY" \
  "https://api.blocklens.co/v1/holder/valuation?start_date=2024-01-01&end_date=2024-12-31&limit=365"

Related Metrics

• On-Balance Volume (OBV) — Cumulative volume flow indicator that tracks whether volume is flowing into or out of an asset based on price direction
• Accumulation/Distribution Line (ADL) — Cumulative volume indicator weighted by where the close falls within the daily range, revealing accumulation and distribution patterns
• Block Price Trend (BPT) — Cumulative indicator that tracks the relationship between Bitcoin block production rate and price movements — rising BPT signals alignment between mining activity and positive price action