Volume Accumulation Percentage Indicator Using Intraday Price Position
Summary
The Volume Accumulation Percentage Indicator (VAPI) modifies volume accumulation by weighting volume according to where the close sits within the bar's high-low range. Its described calculation scales the close's position in that range, multiplies it by volume, and compares the rolling sum of these weighted values with the rolling volume sum. The result is presented as an oscillator and histogram around a zero line; the provided implementation uses a fixed lookback of ten bars.
The text interprets rising VAPI while price is near the lower portion of a trading range as possible accumulation, and falling VAPI as distribution. It also suggests watching for divergence between price and the indicator. These are indicator interpretations, not tested performance claims: the document supplies no market, timeframe, trading rules, risk controls, or empirical results. The calculation also depends on a nonzero high-low range and volume total, details that are not discussed in the description.
Key ideas
- VAPI weights volume using the close's position within each bar's high-low range.
- The indicator compares rolling weighted volume with rolling total volume.
- Rising VAPI near the lower part of a range is described as possible accumulation.
- Declining VAPI is interpreted as distribution, while divergence may be monitored.
- The document provides no empirical test of the indicator's trading value.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.