Volume-Weighted Price Movement

20 mag

The Volume-Weighted Price Movement (VWPM) indicator is an easy to read technical analysis tool that analyses how volume and price movement work together to drive market momentum.

How It Works
The VWPM indicator tracks two primary components:

Bullish Movement (green line): Measures the upward price movement weighted by volume. When price closes above the open, this component calculates how much buying pressure exists by multiplying the price change (close - open) by the volume of that period.

Bearish Movement (red line): Measures the downward price movement weighted by volume. When price closes below the open, this component calculates how much selling pressure exists by multiplying the price change (open - close) by the volume of that period.

Bull-Bear Difference (lime/orange line): Shows the net momentum by subtracting bearish movement from bullish movement, providing an at-a-glance view of which force is dominant.

The VWPM integrates volume data to identify whether price movements are backed by significant participation. A large price move with low volume carries less weight than the same move with high volume, providing a more accurate reflection of market strength.

A shorter lookback period makes the indicator more responsive to recent price action, while a longer period smooths out market noise for trend identification.

Interpretation

Bullish Signals

When the green line (bull movement) rises and stays above the red line
When the Bull-Bear Difference line crosses above zero and maintains positive momentum
Divergence between price making lower lows but the bull line making higher lows (hidden strength)

Bearish Signals

When the red line (bear movement) rises and stays above the green line
When the Bull-Bear Difference line crosses below zero and maintains negative momentum
Divergence between price making higher highs but the bull line making lower highs (hidden weakness)



open source, if anyone makes the script better please let me know :)

3 giu

Note di rilascio

The Volume-Weighted Price Movement (VWPM) indicator is an easy to read technical analysis tool that analyses how volume and price movement work together to drive market momentum.

How It Works
The VWPM indicator tracks two primary components:

Bullish Movement (green line): Measures the upward price movement weighted by volume. When price closes above the open, this component calculates how much buying pressure exists by multiplying the price change (close - open) by the volume of that period.

Bearish Movement (red line): Measures the downward price movement weighted by volume. When price closes below the open, this component calculates how much selling pressure exists by multiplying the price change (open - close) by the volume of that period.

Bull-Bear Difference (lime/orange line): Shows the net momentum by subtracting bearish movement from bullish movement, providing an at-a-glance view of which force is dominant.

The VWPM integrates volume data to identify whether price movements are backed by significant participation. A large price move with low volume carries less weight than the same move with high volume, providing a more accurate reflection of market strength.

A shorter lookback period makes the indicator more responsive to recent price action, while a longer period smooths out market noise for trend identification.

Interpretation

Bullish Signals

When the green line (bull movement) rises and stays above the red line
When the Bull-Bear Difference line crosses above zero and maintains positive momentum
Divergence between price making lower lows but the bull line making higher lows (hidden strength)

Bearish Signals

When the red line (bear movement) rises and stays above the green line
When the Bull-Bear Difference line crosses below zero and maintains negative momentum
Divergence between price making higher highs but the bull line making lower highs (hidden weakness)

How to use this in trading: By itself the indicator is not a signals generator, however it can give confluence to your trade plan and can help you work out when to exit your trade. You are able to see quickly and easily which price movements are accompanied by how much volume and whether the strength of the trend moving the opposite direction is gaining volume or loosing volume which can help in your decision making regarding your trade. Disclaimer: This is not real raw bear- bull strength information, this information assumes that the volume traded in each individual bar is related to the direction which the bar is heading. Trading is risky so trade safe.

Open source, if anyone makes the script better please let me know :)

7 giorni fa

Note di rilascio

Volume-Weighted Price Movement (VWPM)

(Important: Set Your Wick Pressure Multiplier Manually
The wick pressure lines require a manually-set multiplier because different markets have very different price ranges and wick sizes. Simply increase the Wick Pressure Multiplier until the blue/purple lines display clearly on your chart- for example, a value around 500,000 works well on MNQ for a 4HR chart, while other markets may need higher or lower values.)

The Volume-Weighted Price Movement (VWPM) indicator is an easy to read technical analysis tool that analyses how volume and price movement work together to drive market momentum. This updated version also includes wick-pressure analytics, a dynamic and static threshold line and improved visual clarity for easier interpretation.

How It Works
The VWPM indicator tracks two primary components, with additional visual layers that help traders quickly identify shifts in participation and pressure:

Bullish Movement (green filled line)
Measures the upward price movement weighted by volume. When price closes above the open, this component calculates how much buying pressure exists by multiplying the price change (close - open) by the volume of that period. This makes it easy to see whether upward candles are backed by meaningful trader activity or just drifting upward on weak participation.

Bearish Movement (red line)
Measures the downward price movement weighted by volume. When price closes below the open, this component calculates how much selling pressure exists by multiplying the price change (open - close) by the volume of that period. This helps highlight when downward moves are driven by real momentum versus low-effort pullbacks.

Bull-Bear Difference (lime/orange line)
Shows the net momentum by subtracting bearish movement from bullish movement, providing an at-a-glance view of which force is dominant.

Wick Pressure (blue / purple lines)
New addition: Wick Pressure measures how aggressively price rejects highs (bear wick pressure) or defends lows (bull wick pressure).
Bull wick pressure = buying pressure shown by strong lower-wick absorption
Bear wick pressure = selling pressure shown by strong upper-wick rejection
These are plotted as semi-transparent lines. They help reveal exhaustion, absorption, or hidden aggression within each candle.

Dynamic Baseline (black line)
New addition: The Dynamic Baseline can be turned on in the settings. This smooths bull and bear pressure into a single non-directional average and automatically adjusts to recent behaviour, giving you a simple threshold line you can compare pressure against.
It provides:
-A clear midpoint reference showing whether pressure is building or fading
-A threshold that lets you quickly compare the bull and bear pressure lines against, helping you see when either side is pushing harder than normal.

Static Threshold Line (yellow line)
New addition: The Static Threshold Line can be turned on in the settings and lets you set a fixed reference level on the indicator, acting as a visual benchmark for unusually high or low pressure (user should set threshold level).
You can use it to:
-Mark a custom pressure level that you consider significant
-Highlight when bull or bear pressure exceeds a predefined threshold
-Create a zone (using the threshold width) that acts like a band of “elevated activity”
-Quickly see when the market moves into or out of your chosen pressure region

Stats Table (quick pressure & volume summary)
The indicator includes an optional stats table that gives you a fast, simplified overview of what the VWPM is detecting behind the scenes. Instead of analysing every line visually, the table highlights the most important pressure and volume values in one place, helping you make quicker decisions.

Here’s what each row tells you:
Bull Avg – The average bullish pressure over your lookback period.
Tells you how strong buying activity has been recently.
Bear Avg – The average bearish pressure over the same period.
Shows how strong selling activity has been.
Bull-Bear Diff – Bull Avg minus Bear Avg.
If positive, buyers are controlling the market or if negative, sellers have the edge.
Volume % Avg – Current volume as a percentage of the recent volume average.
Helps you see whether the current move is happening on strong or weak volume.
Vol vs Highest – Current volume compared to the highest volume seen during your lookback window.
Useful for spotting unusually high-activity bars that can shift momentum.
% Change Diff – Shows how quickly the Bull-Bear Difference is changing from one bar to the next.
If the percentage is rising, pressure is accelerating; if it is falling, pressure is weakening.
Trend – A simple interpretation of pressure direction (Bullish, Bearish, or Neutral).
Makes it obvious which side is currently winning without needing to read the lines yourself.

Overall, the table acts as a quick decision-support tool, giving you a clear snapshot of pressure strength, volume context, and trend bias- all in one panel.

The VWPM integrates volume data to identify whether price movements are backed by significant participation. A large price move with low volume carries less weight than the same move with high volume, providing a more accurate reflection of market strength. Combined with wick pressure and the baseline, the updated indicator now visualizes both direct momentum and underlying bar-level aggression.

Disclaimer
This indicator estimates buying/selling pressure using volume and wick size but does not measure actual order flow. Thresholds and baselines are interpretive only. Trading is risky, always use proper risk management.