Smoothed Accumulation & Distribution Percentage {DCAquant}

24 Mar 2024

Smoothed Volume Accumulation & Distribution Percentage (VAPI) with Volume Weighted Average Price (VWAP) {DCAquant}

The Smoothed Volume Accumulation & Distribution Percentage (VAPI) indicator, developed by DCAquant, combines the Volume Accumulation Percentage (VAP) with the Volume Weighted Average Price (VWAP) to provide insights into market dynamics and potential trends.

Volume Accumulation Percentage (VAP): VAP measures the degree of accumulation or distribution of an asset based on volume. It compares the volume-weighted price movement of an asset with its price range over a specified period. VAPI indicates whether buying or selling pressure is prevailing in the market.

Volume Weighted Average Price (VWAP): VWAP is a trading benchmark that gives the average price a security has traded at throughout the day, based on both volume and price. It is often used by traders to assess the efficiency of their trades and to identify significant price levels.

Features:

Lookback Period: Users can customize the lookback period to adjust the sensitivity of the indicator.

Smooth Function: Users can choose to apply a simple moving average to smooth the VAPI curve, enhancing clarity in trend identification.
How to Use:

VAPI Histogram: The histogram represents the VAPI values, with positive values indicating accumulation and negative values indicating distribution.

VAPI Oscillator: The oscillator plots the VAPI curve, allowing traders to identify trend changes and potential reversal points.

VAPI Signal Arrows: Upward-pointing triangles indicate potential buying opportunities, while downward-pointing triangles suggest potential selling opportunities.

Disclaimer:

This indicator is provided for educational and informational purposes only. Trading involves substantial risk, and past performance is not indicative of future results. Users should exercise caution and perform their own analysis before making any trading decisions.