Volume Accumulation Percentage: Volume-Weighted Price Position

Summary

The document explains a volume accumulation oscillator that summarizes where trading volume occurs within each candle’s high-low range. For each bar, it weights volume by the close’s position relative to the high and low, producing a signed contribution: closes near the high contribute positively, while closes near the low contribute negatively. The contributions are summed over a chosen period and divided by total volume for that period, then expressed as a percentage.

The only configurable input described is the lookback period. The document provides the calculation but no chart examples, market tests, or evidence that the indicator predicts returns. It also does not explain how to turn readings into entries or exits, or how to handle bars where the high and low are equal. It is therefore a definition of an indicator, not a tested trading strategy; interpretation and validation would be needed before using it for decisions.

Key ideas

• The indicator assigns each candle’s volume a signed weight based on the close’s location within its high-low range.
• It sums weighted volume and total volume over the selected period.
• The ratio of those sums is scaled to a percentage.
• The period is the only input parameter described.
• The document gives no trading rules or empirical performance evidence.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.