VPT Ribbon on Price Chart (Normalized)

📊 Volume Price Trend (VPT) Ribbon – Explained

🔷 What it Is:

A visual ribbon of EMAs (Exponential Moving Averages) applied to the Volume Price Trend (VPT) line.
It helps you see volume-backed momentum trends — not just price.


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📈 What VPT Does:

VPT = cumulative sum of (volume × percentage price change)

It rises sharply when price increases on high volume = strong buying

It falls when price decreases on high volume = strong selling

Flat movement = low conviction



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🧠 What the Ribbon Shows:

Each line in the ribbon is an EMA of the VPT line, colored like this:

Color Meaning

Green shades Strong uptrend supported by volume
Lime Early signs of weakening or pause
Orange Neutral to bearish transition zone
Red shades Strong volume-backed downtrend


When the lines spread and point upward → strong bullish volume momentum.
When the ribbon compresses or flips down → weakening or bearish trend.


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✅ How to Use:

Observation Interpretation

All EMAs rising + green tones Bullish volume trend
Ribbon narrowing + lime/orange emerging Caution – possible reversal or slowdown
Red tones + EMAs turning downward Bearish volume momentum



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